Final answer:
The statement is false; nominal GDP is measured using current-year prices, whereas real GDP uses base-year prices to account for inflation.
Step-by-step explanation:
The statement that nominal GDP measures the value of all final goods and services at base-year prices is false. Nominal GDP refers to the value of all goods and services produced in an economy at the prices that were current in the year in which the output is produced. To correct for inflation and to compare economic output over different years, economists use real GDP, which measures the value of all goods and services produced using constant prices from a selected base year. The process of converting nominal GDP to real GDP is important for understanding the true growth of an economy, taking out the effects of inflation.