The total market value of all goods and services produced in a country in a given year, measured at current prices and not adjusted for inflation, is called which measure?

• A. Nominal GDP
• B. Real GDP
• C. Inflation
• D. GDP per capita

Answer: (A)

Nominal GDP. It measures the total market value of all final goods and services produced in a country in a given year using current prices, so it reflects price levels at the time rather than removing inflation effects. Real GDP, by contrast, uses base-year prices to adjust for inflation so comparisons over time reflect changes in quantity, not price. Inflation is the rate at which the overall price level rises, not a measure of output’s value. GDP per capita is total GDP divided by population, focusing on average living standards rather than the total value of production. The description points to nominal GDP because it is the value measured at current prices without adjusting for inflation.