The conversation between human and AI assistant.
What is the difference betweeen nominal price and real price?
So, can you give me an example of the difference between nominal and real price?
Yes, let's say a loaf of bread costs $2 in 2000 and it costs $3 today. The nominal price has increased by $1, but if you adjust for inflation, the real price of the bread may be less than or equal to $2, depending on the rate of inflation.