ACT 11 REAL DATA VS NOMINAL DATA - Essay Example

Macro & Micro economics Real Data Vs Nominal Data Nominal Data v/s Real Value Data: As far as economics is concerned “Nominal data is the value of any item/service in terms of money while real data is the value of an item/service in terms of commodity or service” (Nominal, 2015)Examples:In economics, it is the monetary value of a commodity or service that represent nominal value while on the other hand real value represent the worth of an item or commodity in terms of some other commodity example may include a number of commodities that are represented in terms of GNP (gross national income which represent nominal value) and GDP (gross domestic product which represent real value).

But as far as decision making is concerned as nominal data represent item/service worth in terms of prices therefor it may not depict the real picture of the worth of the good/service but in case of real data as it is free from monetary terms therefor it would better guide the decision making process.However if reliability of information is concerned that whether real data is better or nominal than obviously answer to this question is dependent on type of information to be required, because in order to assess growth than real data would provide the conclusive information, but for information about volume and operations etc.

than nominal data would be required for such decision making,Therefore, both types of data provide information according to their nature, and it is important to note that it is the underlying questions not the nature of data when reliability of information is concerned.ReferencesNominal, R. v. (2015, May 18). Real vs. Nominal. Retrieved from Real vs. Nominal: http://www.econlib.org/library/Topics/HighSchool/RealvsNominal.html