To convert a nominal change to a real change in dollar terms, the base year index must be set at 100.

Name: To convert a nominal change to a real change in dollar terms, the base year index must be set at 100.
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The base year index is typically set at 100 to provide a reference point for comparing changes in price levels over time, allowing for the calculation of real changes by adjusting nominal values for inflation.

To Convert a Nominal Change to a Real Change in Dollar