Using purchasing power parity instead of exchange rates to calculate output will most likely:

Question

Quizplus · Accepted Answer

Purchasing Power Parity (PPP) adjusts for differences in price levels between countries, often making the relative value of output in developing countries appear higher compared to using market exchange rates. This is because goods and services in developing countries are often cheaper when compared to developed countries, so when these price differences are accounted for through PPP, the purchasing power and thus the relative value of output in developing countries increases.

Using Purchasing Power Parity Instead of Exchange Rates to Calculate