multiple choice question\ndeflating a nominal quantity involves\no multiplying the nominal quantity by a…

multiple choice question\ndeflating a nominal quantity involves\no multiplying the nominal quantity by a price index.\no dividing a price index by the nominal quantity.\no dividing the nominal quantity by a price index.

multiple choice question\ndeflating a nominal quantity involves\no multiplying the nominal quantity by a price index.\no dividing a price index by the nominal quantity.\no dividing the nominal quantity by a price index.

Answer

Brief Explanations:

Deflating a nominal quantity is the process of adjusting it for inflation. This is done by dividing the nominal quantity by a price - index (usually the Consumer Price Index or GDP deflator) to get the real quantity. This removes the effect of price changes over time.

Answer:

O dividing the nominal quantity by a price index.