1. The statement "the number would go up because money is worth less" refers to inflation, where the purchasing power of money decreases over time. 2. When money is worth less, prices of goods and services tend to increase, which means the nominal numbers (like prices or wages) go up. 3. This is often measured by the inflation rate, which is the percentage increase in the price level over a period. 4. For example, if the price of a basket of goods was $100 last year and is $105 this year, the inflation rate is calculated as: $$\text{Inflation Rate} = \frac{105 - 100}{100} \times 100 = 5\%$$ 5. This means prices have increased by 5%, so the number (price) goes up because each unit of money buys less than before. 6. Understanding inflation helps explain why nominal values increase even if the real value or purchasing power decreases.