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bagirrra123 [75]
2 years ago
5

The process of converting current dollar values into real terms is called ______, while the process of adjusting nominal quantit

ies to maintain their purchasing power is called ______.
Business
1 answer:
OLga [1]2 years ago
3 0

Answer:

<em>The process of converting current dollar values into real terms is called </em><em><u>deflating</u></em><em> while the process of adjusting nominal quantities to maintain their </em><em>purchasing</em><em> power is called </em><em><u>indexing</u></em>

<em>Deflating</em><em> </em><em>-</em><em> </em><em>convert nominal value into real value; translating a dollar value from one point in time for a real value in another point in time.</em>

<em>Indexing</em><em> </em><em>-</em><em> </em><em>adjust nominal value to hold real value constant; ex. social security benefits. </em>

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