Nominal GDP, or Gross Domestic Product, measures the total value of all goods and services produced in a country within a specific time period, usually a year, without adjusting for inflation. It reflects current market prices, making it useful for comparing economic performance over time or between different economies. However, nominal GDP can be misleading when comparing economic growth across years, as it may increase simply due to rising prices rather than actual growth in production. To get a clearer picture of economic health, analysts often look at Real GDP, which adjusts for inflation and provides a more accurate representation of economic activity.