What method do macroeconomists use to accurately correct for relative standard of living between two countries?

Question

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Purchasing power parity (PPP) is the method used by macroeconomists to adjust for the relative standard of living between two countries. PPP takes into account the differences in the prices of goods and services in each country to compute the value of their respective currencies. This adjustment ensures a more accurate comparison of economic measures like GDP or income between two countries.

What Method Do Macroeconomists Use to Accurately Correct for Relative