Give factors that affect real income.

Real incomes are closely linked to market demands (market conditions), since they are an important factor that affects demand. These factors include

• The general price level of commodities
• Level of consumer’s income
• Availability of goods and service
• Levels of taxation
• Size of monetary/subsistence sector
• The cost of living
• General level of production in an economy.
• Wage Growth.
• Employment Levels.
• Interest Rates.