Question

Real and nominal income is calculated respectively at

Answer 1

Answer:

Real income is income of individuals or nations after adjusting for inflation. It is calculated by dividing nominal income by the price level. ... Therefore, real income is a more useful indicator of well-being since it measures the amount of goods and services that can be purchased with the income.

Answer 2

Real and nominal income is calculated respectively at constant price and the current price.

• The constant price and the current price are used to determine real and nominal income.
• The term "constant pricing" refers to real values that have been adjusted for inflation.
• They're usually worth a lot of money.
• The prices of goods and services at a given time are known as current pricing.
• The majority of current prices are in nominal value.