Question

Real income is:___________ a) Nominal income adjusted for inflation. b) The amount of money income received in a given time period, measured in current dollars. c) The use of nominal dollars to gauge changes in income. d) None of the other choices.

Answer 1

Answer:

A. Nominal income adjusted for inflation.

Explanation:

Real income is simply the amount usually in monetary terms a person, enterprise or others makes after accounting for inflation. It is also called real wage that is an individual's income.

Real income are also defined as Income that is adjusted to inflation.

Nominal income are defined as income not adjusted to inflation.