Question

What is real income

Answer 1

Answer:

Real income is how much money an individual or entity makes after accounting for inflation. It is sometimes called real wage when referring to an individual's income. Individuals often closely track their nominal vs. real income to have the best understanding of their purchasing power.

Answer 2

Real income of a person is purchasing power of a person. This not only depends on the income of the person but also on non monetary aspects like prices of goods and commodities etc.