Nominal GDP uses constant base-year prices to place a value on the economy's production of goods and services, while real GDP uses current prices to place a value on the economy's production of goods and services.

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Nominal GDP uses current prices to place a value on the economy's production of goods and services, while real GDP uses constant base-year prices to adjust for inflation and more accurately measure the economy's production over time.

Nominal GDP Uses Constant Base-Year Prices to Place a Value