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    Detailed Explanation with Example: Nominal and Real Quantity

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    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?

    Please provide at least 100 words.

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    https://brainmass.com/economics/inflation/detailed-explanation-example-nominal-real-quantity-519347

    Solution Preview

    Problem: 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 ...

    Solution Summary

    This solution gives a detailed explanation of the difference between nominal and real quantities, and illustrates the difference with an example based on the price of Big Mac in 1969 and 2012. The explanation is given 180 words.

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