What term is used to refer to the GDP value calculated at the current prevailing prices?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Nominal GDP.
The term used to refer to the GDP value calculated at the current prevailing prices is Nominal GDP. Nominal GDP measures a country's total economic output (the value of all goods and services) as priced at current market prices during the period of measurement. Unlike Real GDP, which adjusts for inflation and reflects the value of goods and services in constant prices, Nominal GDP does not account for changes in the price level over time.