A bundle of goods that costs $1 in the United States is worth 5 units in Country A's currency.If Country A's GDP in its own currency is 5,000,000 units,Country A's GDP in PPP-adjusted dollars will be ________.
A) $1,000,000
B) $2,500,000
C) $3,000,000
D) $50,000,000

Question

Quizplus · Accepted Answer

To calculate the PPP-adjusted GDP, divide Country A's GDP in its own currency by the PPP exchange rate (5 units = $1). Thus, 5,000,000 units / 5 = $1,000,000.

A Bundle of Goods That Costs $1 in the United