What is nominal?

Nominal means something is given a name or value, but it doesn't have to do with how much it actually costs or weighs.

Imagine you and your friend are playing with toy cars. You decide that each car has a nominal price, like $1, even though some cars are bigger and cost more in real life. The nominal price is just the name we give to what something is worth, not how much it really costs.

Sometimes people use nominal values to make things easier to compare. Like when you're counting your toys, each toy might be worth 1 point, even if some are bigger or cooler than others.

So, nominal is like giving something a simple name instead of a complicated one. It helps us keep track and understand things better, just like how we use names for our friends and pets!