Nominal Gross Domestic Product (GDP) is distinguished from Real GDP in that Nominal GDP is calculated using

The correct option is prevailing market prices of the current period.

Step-by-step Explanation:

1. Understanding Gross Domestic Product (GDP):
Gross Domestic Product (GDP) measures the total monetary value of all final goods and services produced within a nation's borders during a specific period of time.

2. Distinguishing Nominal GDP from Real GDP:
- Nominal GDP: Evaluates the total output of goods and services using the prevailing market prices of the current period (current-year prices). Because it reflects current market prices, changes in Nominal GDP can result either from changes in the physical volume of production or from fluctuations in price levels (inflation or deflation).
- Real GDP: Evaluates output using constant prices from a fixed or designated baseline year (base-year prices). Holding prices constant removes the effect of price changes, isolating pure changes in economic output.

3. Mathematical Representation:
For goods produced with current prices $P_{\text{current}}$ and current quantities $Q_{\text{current}}$, Nominal GDP is expressed as:

$\text{Nominal GDP}=\sum (P_{\text{current}}\times Q_{\text{current}})$

In contrast, Real GDP uses prices from a designated baseline year $P_{\text{base}}$:

$\text{Real GDP}=\sum (P_{\text{base}}\times Q_{\text{current}})$

4. Evaluation of Options:
- Wholesale market index prices: Incorrect. GDP measures final market prices paid by consumers, not wholesale indices.
- Prevailing market prices of the current period: Correct. Nominal GDP specifically uses current period market prices.
- Global market price benchmarks: Incorrect. GDP is calculated based on national market prices, not international price benchmarks.
- Prices of a designated baseline year: Incorrect. Base-year prices are used to calculate Real GDP, not Nominal GDP.