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... and changes in the quantities of final goods and services produced. to distinguish price changes from quantity changes , we use the concepts of nominal GDP and real GDP. (Mc Taggart & Findlay& Parkin, 1999) Nominal GDP measures the value of the output of final goods and services using the prices that prevailed at the time of measurement, or current prices. It is sometimes called current dollar GDP. Real GDP measures the value of the output of final goods and services using the prices that prevailed in some given or base year. It is sometimes called constant dollar GDP. Comparing real GDP from one year to another enables us to say whether the economy has produced more or fewer goods and services. Comparing nominal GDP from one year to another does not permit us to compare the quantities of goods and services produced in those two years , because some or all of ...