The practice of increasing a nominal quantity each period by an amount equal to the percentage increase in a specified price index is called

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The practice of increasing a nominal quantity (such as wages or pensions) each period by an amount equal to the percentage increase in a specified price index (such as the consumer price index) is called indexing. It helps to maintain the real value of the quantity by adjusting for inflation.

The Practice of Increasing a Nominal Quantity Each Period by an Amount