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Suppose that nominal national income in some country fell from $100 billion to $95 billion during the year. Over the same period, inflation was 5%.
Suppose that nominal national income in some country fell from $100
billion to $95 billion during the year. Over the same period, inflation was
5%. Therefore the real national income in this country
A) was unaffected.
B) fell by 10%.
C) rose by 5%.
D) rose by 10%.
E) fell by 5%.
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