(Macro) Episode 17: Real Income

Why does inflation even matter? One way is the effect on your ability to purchase goods and services with the dollars that you have.

Category:

Education

Tags:

• economics
• real
• nominal
• inflation
• income
• prices

[MVPIMP]

best, and most benificial channel ever !

[mjmfoodie]

@MVPIMP :-)

[cbigskies]

I love your voice and visuals in your videos. I'm taking Econ online, so these videos are great for enhancing my understanding. Thank you, mjmfoodie!!

[Letar001]

In other words, real income refers to the amount of goods and services you can buy today compared to the price of the same goods and services you could have purchased in another time period. For example, if it costs you $2,000 more to purchase the same amount of goods and services (i.e. food, gas, rent, utilities, interest, etc) this year compared to last year, and your annual income stayed the same, then your real income has actually decreased by $2,000.

[Letar001]

The income of an individual or group after taking into consideration the effects of inflation on purchasing power. For example, if you received a 2% salary rise over the previous year and inflation for the year was 1%, then your real income only rose 1%. Conversely, if you received a 2% raise in salary and inflation stood at 3%, then your real income would have shrunk 1%.

[Letar001]

this video reminds me of nyan.cat

[eenix]

A 5 minutes video that beat my 2 hours of lecture regarding this topic

[TheMEK3]

WOW!!!  Made so much sense!

[MrKing223]

thank you so much!

[shilpapeswani]

thank you

[wutuluknat]

Thanks a lot Gurl u r the most helpful person on utube thx

[saikangable]

well done