When we use PPP we can make valid international comparisons of real GDP because we

Question

Quizplus · Accepted Answer

When we use PPP (Purchasing Power Parity) we calculate the value of goods and services produced in two countries using the same prices, which allows for valid international comparisons of real GDP. By using the same prices, we can account for differences in the cost of living and inflation between countries, and obtain a more accurate picture of each country's economic output.

When We Use PPP We Can Make Valid International Comparisons