Which statement correctly differentiates nominal and real GDP?

Which statement correctly differentiates nominal and real GDP?

• A. Nominal GDP is measured at current prices; real GDP is adjusted for inflation using a base year.
• B. Nominal GDP is adjusted for inflation; real GDP is at current prices.
• C. Nominal GDP excludes government spending; real GDP includes it.
• D. Real GDP includes only production of capital goods.

Answer: (A)