nominaalitulo

Nominaalitulo is a term used in economics to describe income measured in current monetary units without adjusting for changes in the price level. It encompasses wages, salaries, profits, rents, and other monetary receipts earned over a specified period, typically a year or a month, and is expressed in the nominal currency in use (for example, euros in Finland).

Nominal income is distinct from real income, which is adjusted for inflation through a price index. Real income reflects actual purchasing power, while nominal income may rise due to higher earnings as well as higher prices. For example, if a salary increases from 40,000 to 42,000 euros, but inflation is 5%, real purchasing power may still fall.

In macroeconomics, nominal income is used in aggregate measures such as nominal GDP, which values production at current prices, and in analyses that do not adjust for inflation. For individuals, nominal income is the basis for budgeting in current money terms, but evaluating changes in living standards typically requires considering real income.

Limitations: relying on nominal income alone can misrepresent changes in well-being over time or across periods with differing inflation rates. Comparisons across countries also require adjustments for price level differences.

See also: real income, inflation, purchasing power, GDP.