The family's nominal income rose by 10 percent between the base year and the subsequent year. Are they worse off or better off in terms of what their income is able to buy? The rate of growth in the family's nominal income between the base year and the following year = 10% inflation rate between the base year and the following year= 9.3% Because the rate of nominal income growth is lower than the rate of inflation, the family is better off because their real purchasing power has increased between the base year and the following year