Deflating a nominal quantity is the process of dividing a _______ quantity by a ______ in order to express the quantity in ______ terms.

Question

Quizplus · Accepted Answer

Deflating a nominal quantity involves dividing it by a price index in order to express it in real terms. Therefore, the best choice is D, which matches nominal quantity with a price index and expresses the result in real terms. The other options either do not include a price index (A, B, C) or express the result in nominal terms (A, B, E).

Deflating a Nominal Quantity Is the Process of Dividing a _______