What is the difference among nominal and real quantities

Reference no: EM1329249

Detailed Explanation with Example: Nominal and Real Quantity

This is an important notion in economics which infuses several concepts dealing with money. We have "nominal" quantities and "real" quantities. For example, one would talk about the nominal price of a house as opposed to real price of the same house. Or one might talk about nominal deficit as opposed to real deficit.

What's the difference between nominal and real quantities and why make the distinction?

Reference no: EM1329249

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