Permanent income is ?
Correct answer: E. a person's normal or average income
- A. Social Security income of the elderly and disabled
- B. none of these answers
- C. wages fixed by a union or other labour contract
- D. equal to the minimum wage
- E. a person's normal or average income
Explanation
Permanent income is the normal or expected average income a person can maintain over time, unlike a temporary bonus, loss, or one-period fluctuation. It is therefore distinct from the minimum wage, union-set wages, and targeted benefits.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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