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Question
Nominal income per person in the United States in 1960 was about $2,800 per year, while in 1990 nominal income per person was about $21,000. This indicates that
A) nominal income was about 7.5 times greater in 1990, but we canʹt tell if this increase is due to inflation, economic growth, or a combination of the two.
B) people enjoyed a standard of living about 7.5 times higher in 1990 than in 1960.
C) a dollar in 1960 was worth less than a dollar in 1990.
D) the average person would consider him/herself about 7.5 times happier in 1990 than in 1960.
Answer
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