(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. “(Macro) Episode 17: Real Income” by Dr. Mary J. McGlasson is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

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22 Responses to “(Macro) Episode 17: Real Income” Subscribe

  1. anwarjahans February 22, 2012 at 5:49 am #

    slow dow lady sheesh…

  2. ingays February 22, 2012 at 6:40 am #

    Still confusing :/

  3. ingays February 22, 2012 at 7:36 am #

    Still confusing :/

  4. imjustakid724 February 22, 2012 at 7:38 am #

    But other than that, I love these videos. They are helping econ make so much more sense to me!

  5. imjustakid724 February 22, 2012 at 8:02 am #

    I love these videos, but one this that really bugs me is how we have to multiply the answer we get for CPI by 100 to get rid of decimals and then when we use CPI in another formula (to calculate Real Income, for instance), we have to multiply that answer by 100. In my course (I’m in Canada), we are never told to multiply by 100. We use CPI in hundredths, so we’d use 1.1 instead of 110 and then when we calculate the Real Income, we wouldn’t have to multiply by 100.

  6. cbigskies February 22, 2012 at 8:57 am #

    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!!

  7. Letar001 February 22, 2012 at 9:45 am #

    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.

  8. Letar001 February 22, 2012 at 10:14 am #

    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%.

  9. Letar001 February 22, 2012 at 10:35 am #

    this video reminds me of nyan.cat

  10. eenix February 22, 2012 at 10:41 am #

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

  11. TheMEK3 February 22, 2012 at 11:00 am #

    WOW!!! Made so much sense!

  12. MrKing223 February 22, 2012 at 11:11 am #

    thank you so much!

  13. shilpapeswani February 22, 2012 at 11:13 am #

    thank you

  14. wutuluknat February 22, 2012 at 11:22 am #

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

  15. saikangable February 22, 2012 at 12:11 pm #

    well done

  16. bobichina February 22, 2012 at 12:52 pm #

    You are so good !!! I love your lecture !!!!

  17. Barbie246Girl February 22, 2012 at 1:47 pm #

    hi @mjmfoodie how did you get the cpi as 110 for the year

  18. wolfadamwolf February 22, 2012 at 2:35 pm #

    Thankyou Thankyou Thankyou!!!!

  19. mjmfoodie February 22, 2012 at 3:31 pm #


  20. Rinry February 22, 2012 at 3:33 pm #

    Thank you SO much for making these. I love the voicing for these videos and also the extremely helpful drawings. I am studying for a macro final next Wednesday and this is just gold for me. I always have trouble getting the big picture because I can not group details together but this provides a good solid shape for my understanding of macro.

  21. Ibrahim Massalha February 22, 2012 at 4:30 pm #

    best, and most benificial channel ever !

  22. Agenericusername99 February 22, 2012 at 5:18 pm #

    hi good video. got a tad confused with the I and P on the rabbit and turtle and if I was income or inflation, and i think sometimes the rabbit was I and sometimes P. I get it overall however and thanks very much.

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