real income


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Related to real income: Nominal income

Real income

The income of an individual, group, or country adjusted for inflation.

Real Income

Personal, corporate, or national income after accounting for inflation. Comparing one's real income from year to year shows how much income has grown or shrunk after adjusting for how much the buying power of the money has been affected. Nominal income compares only raw dollar amounts and does not account for inflation. For example, if one's nominal income has grown 10% and the inflation rate is 3%, the real income growth is 7%. Real income is also known as real wages. See also: Real GDP.

real income

Income, as of a person, group, or country, that has been adjusted for changes in the prices of goods and services. Real income measures purchasing power in the current year after an adjustment for changes in prices since a selected base year. If money income increases more than consumer prices, real income increases. If money income increases less than consumer prices, real income declines. Declines in real income are unfavorable for those suffering the declines and for firms selling goods and services to them.

real income

see REAL WAGE.
References in periodicals archive ?
In addition, the report found that the Middle East and North Africa will see average real income increases of 1.
In all 27 member countries, real income per capita would end up almost 5% higher on average.
The problem is that of low wages and falling real incomes for working class families, the Government is silent on this critical point.
The second section of the article measures the relative contributions of multifactor productivity improvements, changes in real export and import prices and the growth of labour and capital input to the growth of (gross) real income generated by the business sector in Canada using the methodology explained in Appendix 1.
The magazine's Top 10 Lowest Real Income regions included Springfield (No.
The real income was the second highest after the record real oil export earnings of around $ 465 billion achieved in 2008, when crude prices soared to their highest average before they tumbled in the wake of the global fiscal crisis.
By this author's calculation, that rate of growth would take 694 years to double any initial level of real income per person, and in fact, those were relatively prosperous and progressive centuries.
The real income of households headed by PhD's actually rose considerably.
From the survey of empirical literature we come to the conclusion that although these studies have made significant contributions regarding the relationship between energy consumption and economic growth, but not sufficiently shed lights on the dynamic insights of the sources of energy consumption, real income and domestic price level.
Household average real income declined between 2 and 5 percent for the lowest-income families.
A significant portion of their argument rests on their claim that Saddam's rule produced a decline in Iraqi real income per capita of about 75 percent.