though the prices of the things he buys have gone up about 5% per year over the past three years, sanjiv's annual income has remained constant in nominal terms (meaning before adjusting for inflation) during that period. however, sanjiv feels happier now than he did three years ago because the environment where he lives is cleaner, the crime rate has dropped, and he has a new manager now who treats him in a kinder and respectful way than his previous manager. if the majority of the people who live in sanjiv's city feel the same way about their situations, then we might conclude that over the past three years, the standard of living in that city has:
