The purchasing power parity method of comparing income across countries is based on

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The purchasing power parity method compares income across countries based on the cost of purchasing a specific bundle of goods and services in each country. This allows for a more accurate comparison of standards of living, as it takes into account differences in the prices of goods and services between countries. The exchange rate and size of government are not used in this method.

The Purchasing Power Parity Method of Comparing Income Across Countries