Income in constant dollars is

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Real income is income adjusted for inflation, also known as income in constant dollars. Nominal income is not adjusted for inflation and therefore does not reflect changes in purchasing power over time. Bracket creep refers to the phenomenon where inflation pushes individuals into higher tax brackets, resulting in higher taxes without any increase in real income. The income effect refers to the change in a consumer's demand for a good or service due to a change in income.

Income in Constant Dollars Is