Macro Module 7 Household nominal income pps mcq practice exam questions

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Question 7.1: Household nominal income

∏ = nominal profit of household = 7.37
L = labor supplied by household = 11.87
w = nominal wage rate on labor supplied by household = 4.25 per annum
R = nominal rental price = 14.61% per annum
P = price level = 1.12
δ = capital depreciation rate = 4.23% per annum
K = real capital stock owned by household = 22.77
i = nominal interest rate = 10.67% per annum
B = nominal value of bonds owned by household = 8.5

The household nominal income is which of the following?

Answer 7.1: 7.37 + 4.25 × 11.87 + (14.61% / 1.12 – 4.23%) × 1.12 × 22.77 + 10.67% × 8.5 = 60.97

(household nominal income = ∏ + wL + (R/P – δ) × PK + iB)