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The Use of Purchasing Power Parity Prices

Question 247

Multiple Choice

The use of purchasing power parity prices


A) weakens the validity of cross country comparisons of economic welfare.
B) decreases the real GDP per person statistics published by the International Monetary Fund.
C) accounts for differences in the prices of the same goods in different countries when measuring real GDP.
D) increases the amount by which U.S. GDP is larger than that of any other nation.

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