____ income is adjusted to take out the effects of inflation on purchasing power.

Question

Quizplus · Accepted Answer

Real income is adjusted for inflation to reflect the actual purchasing power of the money earned. Disposable income is the net income after taxes and other deductions, taxable income is the amount of income subject to taxation, total income includes all sources of income, and discretionary income is the amount of income left after necessary expenses are paid. None of these definitions involve adjusting for inflation.

____ Income Is Adjusted to Take Out the Effects of Inflation