Final answer:
Nominal GDP only accounts for nominal variables because it measures economic statistics in terms of actual prices that exist at the time. Real GDP adjusts nominal GDP for inflation and provides a more accurate measurement of the actual level of output.
Step-by-step explanation:
Nominal GDP only accounts for nominal variables because it measures economic statistics in terms of actual prices that exist at the time. Nominal values do not adjust for inflation and reflect the current market prices prevailing in each stated year.
In contrast, real GDP adjusts nominal GDP for inflation, providing a more accurate measurement of the actual level of output in a nation. It is important to consider real GDP when analyzing economic data to understand changes in quantities of goods produced without the influence of price changes.