I've not tried it but its possible. You can go from 720p all the way up to 1080p and pretty much anything in between.
https://forums.macrumors.com/threads/1568657/
OP should probably switch to calling it 'HiDPI' instead of 'retina' lest more people pile on trying to correct him.
HiDPI = retina. Period.
Yes, you can run the iMac in 1280x720 HiDPI mode, and that is EXACTLY the same as what the 13" and 15" MacBook Pro with retina display are doing. 2560x1440 = 4x resolution of 1280x720. Of course, you won't be able to fit anywhere near as much content on the display, this way...
For Apple to maintain the same real estate of the current 27" iMac, an actual Retina display would need to be 5120x2880. It's the only way to maintain the same workflow without scaling. I understand that Apple's definition of "Retina" may mean the iMac doesn't need to be be a full 5120x2880, but to maintain the same real estate and workflow, it absolutely needs to be.
iPhone 1/2/3G/3GS went from 480x320 -> 960x480 on the iPhone 4/4s (4x resolution)
MacBook Pro 13" went from 1280x800 to 2560x1600 (4x the resolution)
MacBook Pro 15" went from 1440x900 to 2880x1800 (4x the resolution)
iMac 21.5" would need to go from 1920x1080 to 3840x2160 (4x the resolution)
iMac 27" would need to go from 2560x1440 to 5120x2880 (4x the resolution)
The 15" resolution is a shame, since 1440x900 effective, un-scaled space is absolutely awful. I WISH Apple had started with the 1600x1050 higher-res 15" model they offered and made the Retina 15" model 3200x2100. But it's too late now, of course.
I find all the MacBook Pros with Retina display to be essentially useless since they don't offer enough un-scaled real estate. 1280x800 effective real estate is a travesty on the 13", and 1440x900 is appalling on a 15".
I wish we had the Samsung ATIV Book 9 Plus 13" screen in the MacBook Pro 13" Retina display model. 3200x1800 is delicious. Would give you 1600x900 effective real estate in "Retina" mode, which I think is the PERFECT resolution for a 13" laptop.
Sure, you can run things in full res, but that comes with other issues...