If nominal income increases while inflation increases at a faster rate, the real standard of living in Flower Land will likely __________.

If nominal income increases, it means that people in Flower Land are earning more money. However, if inflation increases at a faster rate, the prices of goods and services are rising quickly, making everything more expensive. This means that even though people have more money, they cannot buy as much with it because their purchasing power is decreasing. For example, if someone’s income goes up by $100, but prices for food and rent go up by $150, they are worse off than before. Therefore, the real standard of living in Flower Land will likely decrease because people can afford less with their increased income.