Practice prompt · Q:economics-and-market-foundations/align-real-nominal-values-001

Align real and nominal values before comparison

Choose a price basis appropriate to the question and preserve the authored ledger.

Updated Aug 7, 2026 Review due Nov 7, 2026

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An analyst wants to compare a ten-year nominal expense series in purchasing-power terms. Which workflow is controlled?

Choose the best answer. a Retain the nominal ledger, create a separately labeled analytical real-dollar series with a relevant index, and document scope and period. b Replace historical ledger amounts with current CPI-adjusted values without disclosure. c Use any broad index because all deflators are interchangeable.

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Answer: a

Choice a. Preserve both the authored nominal truth and the declared analytical transformation.