Making comparisons of real GDP across countries is difficult because:

Question

Quizplus · Accepted Answer

All of the given options affect the comparison of real GDP across countries. Prices of goods and services vary widely among different countries, thus affecting the purchasing power of consumers. The patterns of consumption also vary from country to country, making it difficult to compare the prices of similar goods and services. Finally, different countries have different currencies, making it challenging to compare their GDP without adjusting for currency values. All of these factors make it challenging to make accurate comparisons of real GDP across countries.

Making Comparisons of Real GDP Across Countries Is Difficult Because