If the growth rate of nominal income is larger than the rate of inflation, then the real value of income has increased. The real value of income is adjusted for inflation, and it reflects the actual purchasing power or the amount of goods and services that can be bought with a given income.
a
increased since the nominal income has grown faster than the price index.
b
decreased since the nominal income has grown faster than the price index.
c
decreased since the real income has grown slower than the price index.
d
increased since the real income has grown faster than the price index.