The amount of money income received in a given time period,measured in current dollars,is
A)Nominal income.
B)Real income.
C)Relative income.
D)The Consumer Price Index.

Question

Quizplus · Accepted Answer

Nominal income is the amount of money income received in a given time period, measured in current dollars. This is the actual amount of money earned by an individual. Real income, on the other hand, adjusts nominal income for inflation and reflects the purchasing power of the income earned. Relative income is a concept that compares an individual's income to the income of others in the society. The Consumer Price Index is a measure of the average price level of goods and services consumed by households. Therefore, the best choice in this context is A) Nominal income.

The Amount of Money Income Received in a Given Time