William's nominal income in 2010 was $72,500. How much was his real income if 2010 was...

William's nominal income in 2010 was $72,500. How much was his real income if 2010 was the base year?

Solutions

Expert Solution

The important thing here to note is that the base year is 2010 and for the base year value of nominal income and real Income is exactly the same

Because we are taking price from that year

so the real income in the 2008 is also $72,500

Rahul Sunny answered 1 year ago

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