Question

if your nominal income in 2014 was $50,000, and prices doubled between 2014 and 2017, to have the same real income, your nominal income in 2017 must be
$50,000.
$75,000.
$90,000.
$100,000.

Explanation:

Step1: Understand Real and Nominal Income

Real income accounts for inflation (price changes). If prices double, nominal income must double to keep real income the same.

Step2: Calculate 2017 Nominal Income

2014 nominal income: $50,000. Prices double, so nominal income needs to double.
$50,000 × 2 = $100,000.

Answer:

D. $100,000