Now, I understand what you are referring to.
I don't know how Caesar is handling the calculation, but I can quote from CSI site (SAP2000, Etabs) and I suppose here it is a similar approach:
"Nonlinear modal time-history analysis, also known as Fast Nonlinear Analysis (FNA), is generally more accurate and efficient than direct-integration time-history analysis. The accuracy of FNA depends upon the sufficiency of suitable mode shapes, similar to how direct integration requires small enough time steps to accurately characterize dynamic behavior."