Real National Income: A useful indicator for measuring the country’s real growth is real income or national income at a fixed rate. Real national income means the value of a product produced at the rate of one base year in a current year. That is, we calculate the real national income of a country by multiplying the amount of the current year's production at a fixed or base year rate. It is called the real national income of the country because it is calculated to avoid inflationary pressures. Base year means the year in which national income in the country should be calculated based on the price level. There should be no natural disasters that year - floods, hurricanes, droughts, cholera, hurricanes, earthquakes, tsunamis, hurricanes, or man-made disasters. Read: Definition of Nominal National Income
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