What is the term for income measured by the amount of goods and services which it will buy?
A)Income effect.
B)Net income.
C)Real income.
D)Nominal income.
E)Actual income.

Question

Quizplus · Accepted Answer

Real income is the term for income measured by the amount of goods and services it can purchase. It takes into account the effect of inflation on purchasing power, unlike nominal income, which is the amount of money earned without adjusting for inflation.

What Is the Term for Income Measured by the Amount