(Answered) The real value of any variable is its nominal ValueThe real value of any variable is its nominal…

➤ How do you convert a nominal value into a real value?
Divide the nominal amount by a price index (CPI or GDP deflator) and multiply by 100, or adjust by cumulative inflation factors. Choose an appropriate base year and index. This yields a constant-price measure that isolates changes in quantity or real income from changes in prices.