Question

Real income can be determined by:
dividing the annual rate of inflation into the number "70."
inflating nominal income for inflation.
dividing the price level by nominal income.
deflating nominal income for inflation.

Answer 1

Answer:

The answer is D. Deflating nominal income for inflation.

Explanation:

Real income is how much money an individual or entity makes after accounting for inflation.  it is the income of an individual or a nation after adjusting inflation. It is calculated by dividing nominal income by the price level.

Hence we can say real income is determined by Deflating nominal income for inflation