AL econ question

Relative and Nominal Price:

The difference between nominal price and relative or real price (as exchange ratio) is often made.

Nominal price is the price quoted in money.
Relative or real price is the exchange ratio between real goods regardless of money.

The distinction is made to make sense of inflation. When all prices are quoted in terms of money units, and the prices in money units change more or less proportionately, the ratio of exchange may not change much. In the extreme case, if all prices quoted in money change in the same proportion, the relative price remains the same.