The use of nominal dollars rather than real dollars to gauge income or wealth is

Question

The use of nominal dollars rather than real dollars to gauge income or wealth is: Real income effect. Money illusion. income creep. Item weight. Personal income is: The sum of wealth and in-kind income. The sum of taxes, in-kind income, and personal consumption. A good measure of the distribution of output. The income received by households before payment of personal taxes. The argument against greater equality in the distribution of income in the United States hinges basic on: Loss of incentives. Greater productivity. The loss of horizontal equity. A higher marginal revenue product. If the economy is producing at capacity and consumers are willing and able to buy more, this may cause Demand-pull inflation. Cost-push inflation. Supply-side inflation. The price effect.

Explanation / Answer

Ans 20
B Money Illusion
   The use of nominal dollars rather than real dollars to gauge changes in one’s income or wealth is called the money illusion.

Ans 21
D The income..personal taxes
Personal income, aka "before-tax income", is the total annual gross earnings of an individual from all income sources, such as: salaries and wages, investment

Ans 22
A Loss of incentives

Ans 23
If the economy is producing at capacity and consumers are willing an dable to buy more this my cause
A Demand Pull Inflation
If aggregate expenditure is greater than the potential output of the economy, then firms will have to pay higher prices for its factors of production, including overtime to its workers, and pay higher variable costs when using existing facilities for longer time periods to increase production. This increased demand leads to an expansionary output gap (aka inflationary gap), which, in turn, increases prices sharply — demand-pull inflation.

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