The value of an item expressed in purchasing power that varies with the overall price level is known as
A) inflation.
B) deflation.
C) the nominal value.
D) the real value.

Question

Quizplus · Accepted Answer

The value of an item that varies with the overall price level is referred to as its real value. This takes into account inflation or deflation to provide a more accurate representation of the item's worth. The nominal value, on the other hand, refers to its value in absolute terms without considering inflation or deflation.

The Value of an Item Expressed in Purchasing Power That