What are constant dollars often referred to as?

Constant dollars are often referred to as real dollars. This terminology is widely used in economics to indicate values that have been adjusted for inflation or deflation, allowing for a more accurate comparison over time. By using constant, or real, dollars, economists can evaluate the true purchasing power of money without the distortions that can arise from changing price levels. This adjustment is essential for understanding the actual economic value of money when comparing figures from different time periods.

In contrast, nominal dollars, which are not adjusted for inflation, can misrepresent the true economic environment. Similarly, future dollars and discounted dollars refer to concepts related to time value of money and interest rates rather than adjustments for inflation. Thus, referring to constant dollars as real dollars emphasizes their adjusted nature and reflects their reliability in economic analysis.