Households and Spending

Question 1

Gross Income

Answer 1

Income before tax

Question 2

Disposable income

Answer 2

Income available for comsumption after tax is deducted

Question 3

Nominal income

Answer 3

Income in absolute numbers

Question 4

Real income

Answer 4

Income adjusted for inflation (it’s value after inflation in goods and services)

Question 5

Symbol of income (by convention)

Answer 5

Y