Real national income
A)changes by the same amount and in the same direction as does nominal national income.
B)refers to national wealth but is not an indicator of current production.
C)refers to national income with no adjustment for changes in prices.
D)always equals nominal national income.
E)changes only when the underlying quantities change.

Question

Quizplus · Accepted Answer

Real national income is adjusted for changes in price levels, reflecting the actual quantity of goods and services produced. It changes only when the underlying quantities change, not just due to price changes.

Real National Income