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Distinguish between nominal national income and real national income?
Wiki User
∙ 9y ago
real income is your real income. that's the actual money you've got.
money income is the one which you are willing to spend (to buys goods etc.). So when we talk of the demand function we are considering the money income of the buyer.
Wiki User
∙ 12y ago
Wiki User
∙ 9y agoNominal national income is used to describe the wages of the citizens or individuals based on a particular currency without factoring in the effects of inflation or deflation. Real national income on the other hand describes the wages of the citizens based on the actual purchasing power.
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What is the difference between real national income and nominal national income?
Real national income : the actual quantity of goods and services produced. the standard of living depends very much on the quantities of goods and services produced. Nominal national income : the money values of total output, total factor incomes and total expenditure. national income is measured in this way.
Distinguish between price and income elasticity of demand?
distinguish between price elasticity of demand and income elasticity of demand
What are the difference real income and nominal income?
The nominal income is refer to the actual amount which a person received in perticular time of period may be in month or weekly which doest not have the effet of inflation and which is fixed in any curcumtances , for e g if there is raise in the prise of the commodities it leads the prise to the inflation but there will be no effect on the Nominal income holder as it is fixed,however in the Real income scenario the inflation amount will effect the real income as it is to be deducted from the Bominal income.hence Real income = Nominal income - inflation , Therefore we can say that real Income is the good measure to know the actual purchasing power of the economy and good aggregate to calculate the National Income
How can an increase in nominal income and a decrease in real income occur simultaneously?
real income is the change with inflation taken into account, nominal income is purely the change of income therefore if inflation was to be 5% and nominal income increased by 2% there would be a real income decrease of 3%
What is nominal national income?
National income is defined as the total value of all the goods and services produced within a country plus income coming from abroad in a particular time period usually 1 year.
What is the difference between real national income and nominal national income?
Real national income : the actual quantity of goods and services produced. the standard of living depends very much on the quantities of goods and services produced. Nominal national income : the money values of total output, total factor incomes and total expenditure. national income is measured in this way.
Distinguish between price and income elasticity of demand?
distinguish between price elasticity of demand and income elasticity of demand
What s meant by income inequality.distinguish between personal and functional distribution of income.?
What is meant by income inequality? Distinguish between personal and functional distribution of income.
What are the difference real income and nominal income?
The nominal income is refer to the actual amount which a person received in perticular time of period may be in month or weekly which doest not have the effet of inflation and which is fixed in any curcumtances , for e g if there is raise in the prise of the commodities it leads the prise to the inflation but there will be no effect on the Nominal income holder as it is fixed,however in the Real income scenario the inflation amount will effect the real income as it is to be deducted from the Bominal income.hence Real income = Nominal income - inflation , Therefore we can say that real Income is the good measure to know the actual purchasing power of the economy and good aggregate to calculate the National Income
How can an increase in nominal income and a decrease in real income occur simultaneously?
real income is the change with inflation taken into account, nominal income is purely the change of income therefore if inflation was to be 5% and nominal income increased by 2% there would be a real income decrease of 3%
What is nominal national income?
National income is defined as the total value of all the goods and services produced within a country plus income coming from abroad in a particular time period usually 1 year.
What are the problem of comparison of national income between time periods?
problem of comparison of national income between time periods
Examples of nominal account?
Examples of nominal accounts are losses and expenses of gains or income.
In 2002 Ortega's nominal income rose by 4.6 percent and the price level rose by 1.6 percent. What is Ortega's real income?
the nominal income rose by 3 percent
Differentiate between national income at market price and national income at factor cost?
National income at factor cost is the measure of national income or output based on the cost of factors of production.This allows the effect of any subsidy or indirect tax to be removed from the final measure. National income at market prices is the total income receivable plus taxes on production and imports less subsidies.
Is bad debts a personal account or nominal account?
Bad debts accounts is a nominal account shown in income statement and use to reduce the accounts receivable amount.
Is A capital account considered a nominal account?
yes it it is because income
