JAMB Economics 2011 Objective — Question 27

Question 27 of 49 from the Joint Admissions and Matriculation Board (JAMB) Economics 2011 Objective paper, with the correct answer and a full explanation.

If real income increases while nominal income remains the same, it can be inferred that

A. A. general prices have fallenCorrect
B. B. employment rate has risen
C. C. general prices have risen
D. D. unemployment rate has decreased

Explanation

A decrease in general price level will make goods more affordable, hence the increase in real income while nominal income stays the same.

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