Ideally,GDP and other measures of national income converted to U.S.dollars should be calculated on the basis of purchasing power parities or through direct comparisons of actual prices for a given product.

Question

Quizplus · Accepted Answer

Using purchasing power parities (PPPs) for converting GDP and other measures of national income into U.S. dollars allows for a more accurate comparison of economic output and living standards between countries by accounting for differences in price levels. Direct comparisons of actual prices can also provide insight into the relative cost of living and the purchasing power of different currencies.

Ideally,GDP and Other Measures of National Income Converted to U