Final answer:
The total value of a nation's goods or services adjusted for inflation is termed real GDP. Real GDP adjusts the nominal economic output by considering the price levels using indices like the CPI, accurately reflecting the actual economic growth.
Step-by-step explanation:
The economic term given to the total value of a nation's goods or services that have been adjusted for inflation is real GDP (Gross Domestic Product). Nominal GDP refers to the value of all final goods and services produced without adjustment for inflation. To correct for the changes in price levels over time, nominal GDP is adjusted to real GDP using a price index such as the Consumer Price Index (CPI). Real GDP provides a more accurate representation of a country's economic output by accounting for inflation or deflation, preventing the misleading effects of price level changes on the economy's perceived growth.
To prevent the issue of double counting, where an item is counted more than once in different stages of production, only the value of final goods is considered in the calculation of GDP. This ensures that the value represented in GDP equates to the total value of a nation's income without redundancy.