How does inflation affect nominal GDP?

How does inflation affect nominal GDP?

Inflation affects nominal GDP by increasing the overall value of goods and services produced in an economy. As prices rise due to inflation, the nominal GDP also increases because it measures the current market value of all final goods and services produced. However, it is important to note that nominal GDP does not account for the effects of inflation on purchasing power, and therefore, it may not accurately reflect changes in the actual production of goods and services.