In 150-200 words, discuss how the nominal and real values of things affect the aggregate behavior of a society. give an example.

The nominal value is the value of a thing in money. The real value is the value in money, goods as well as services. Real values are inflation-adjusted and are, therefore, higher. These helps in the economy in realizing the actual difference in the cost of a commodity, which has occurred due to inflation and not due to the change in the price of the item. This also helps in calculating the gross domestic product rate of a nation, which is affected by inflations and can be calculated in GDP in base year value. These values affect the behavior of the society because if there is a high increase in the AP, then the economy of the country had a positive growth and jobs were created and people were happy during these times, as compared to a reverse situation.