Does pretty add or lessen the meaning of a word?

So my so thinks the word "pretty" adds I don't think so. An example is if someone asked how are you? And you said "pretty good." It's not as good as it could be but it's pretty good. 
Or if someone asked how was the macaroni? I would say, pretty good. If it was okay. Or surprisingly okay. But still not like the greatest thing I've eaten.
 What do you guys think? And give me good examples so I can show him what it really means!! I think it lessens the meaning of the word after it. 
And if you think add please explain why? I don't get how it could add meaning to a word. 

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