In which of the following ways does using purchasing power parity to calculate GDP differ from the use of straight GDP in measuring a country's economic development?

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Quizplus · Accepted Answer

Purchasing power parity adjusts for differences in the cost of living between countries, which means that it accounts for the fact that certain goods and services may be cheaper in some countries than in others. This typically elevates the measured income for less-developed countries, as their lower cost of living would lead to a higher purchasing power parity-adjusted income compared to their straight GDP income measurement.

In Which of the Following Ways Does Using Purchasing Power