Practice mode Basic of Economics

Which statistical factor converts current purchasing power into inflation-adjusted purchasing power?

Correct answer D. Deflator

Explanation

A price deflator divides nominal values by a price index to remove the effect of inflation, giving figures in real, constant-price terms.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.