What is Nominal and Real Data? (You Know, Like Nominal GDP and Real GDP)

The vast majority of our expressions of value are in nominal dollars and not real dollars. The problem is the dollar’s value changes anytime the price level changes, and when the dollar’s value changes, nominal measurements are distorted - which leads to bad decision making. This is a problem with using the dollar as a unit-of-account.
(Webster: “Nominal” expressions are specified amounts without reference to anything of real value.) When you hear the term nominal you should think dollars or monetary amounts. Remember, dollars are simply a means to ends - the ultimate ends is the good and services those dollars can buy (a real thing).
This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.