Economics 9708 · AS & A Level · National income statistics

National income statistics — practice question

If a country’s population stays unchanged and its nominal GDP rises by 5% over a year, in which case are average living standards most likely to have risen during that year?

  • Aif government takes action to ensure there is no increase in unemployment
  • Bif inflation during the year is 3%
  • Cif there is no increase in real national income
  • Dif there is no redistribution of income

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