Amount in the context of Substance theory


Amount in the context of Substance theory

⭐ Core Definition: Amount

Quantity or amount is a property that includes numbers and quantifiable phenomena such as mass, time, distance, heat, angle, and information. Quantities can commonly be compared in terms of "more", "less", or "equal", or by assigning a numerical value multiple of a unit of measurement. Quantity is among the basic classes of things along with quality, substance, change, and relation. Some quantities are such by their inner nature (as number), while others function as states (properties, dimensions, attributes) of things such as heavy and light, long and short, broad and narrow, small and great, or much and little.

Under the name of multitude comes what is discontinuous and discrete and divisible ultimately into indivisibles, such as: army, fleet, flock, government, company, party, people, mess (military), chorus, crowd, and number; all which are cases of collective nouns. Under the name of magnitude comes what is continuous and unified and divisible only into smaller divisibles, such as: matter, mass, energy, liquid, material—all cases of non-collective nouns.

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Amount in the context of Real income

Real income is the income of individuals or nations after adjusting for inflation. It is calculated by dividing nominal income by the price level. Real variables such as real income and real GDP are variables that are measured in physical units, while nominal variables such as nominal income and nominal GDP are measured in monetary units. Therefore, real income is a more useful indicator of well-being since it measures the amount of goods and services that can be purchased with the income. Growth of real income is related to real gross national income per capita growth.

According to the classical dichotomy theory, real variables and nominal variables are separate in the long run, so they are not influenced by each other. In other words, if the nominal starting income was 100 and there was 10% inflation (general rise in prices, for example, what cost 10 now costs 11), then with nominal income of still 100, one can buy roughly 9% less; so if nominal income was not adjusted for inflation (did not rise by 10%), real income has dropped by approximately 9%. But if the classical dichotomy holds, nominal income will eventually go up by 10%, leaving real income unchanged from its original value.

View the full Wikipedia page for Real income
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