Definition: Flows in real terms

SNA 1993

Many flows, such as cash transfers or gross operating surplus, do not have price and quantity dimensions of their own into which they can be decomposed so such flows cannot be measured at constant prices; however, they can be measured "in real terms" by deflating their values by price indices in order to measure their real purchasing power over some selected basket of goods and services that serves as numeraire.
Source:
United Nations, "System of National Accounts (SNA) 1993", United Nations, New York, 1993, § 16.2
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