multiple choice question\nhow can a nominal quantity be converted into a real quantity?\ndividing the…

multiple choice question\nhow can a nominal quantity be converted into a real quantity?\ndividing the nominal quantity by a price index expressed as a fraction for the period\nadding the nominal quantity to a price index expressed as a fraction for the period\ndividing a price index expressed as a fraction for the period by the nominal quantity\nmultiplying the nominal quantity by a price index expressed as a fraction for the period

multiple choice question\nhow can a nominal quantity be converted into a real quantity?\ndividing the nominal quantity by a price index expressed as a fraction for the period\nadding the nominal quantity to a price index expressed as a fraction for the period\ndividing a price index expressed as a fraction for the period by the nominal quantity\nmultiplying the nominal quantity by a price index expressed as a fraction for the period

Answer

Brief Explanations:

In economics, to convert a nominal quantity to a real quantity, we adjust for price - level changes. This is done by dividing the nominal quantity by a price index (usually with a base - year value of 1 or 100, when expressed as a fraction or percentage respectively). This process removes the effect of inflation or deflation.

Answer:

A. Dividing the nominal quantity by a price index expressed as a fraction for the period