Real income is synonymous with:

Question

Quizplus · Accepted Answer

Real income refers to the actual buying power of an individual's income, after accounting for inflation and changes in the cost of goods and services. Therefore, real income is synonymous with buying power, as the amount of goods and services an individual can purchase with their income determines their actual standard of living. Deferred spending, recession wages, and discretionary expenditures are all distinct from real income and do not capture the full purchasing power of an individual's income.

Real Income Is Synonymous With