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Purchasing power parity

There are two ways to measure GDP (total income of a country) of different countries and compare them. One way, called GDP at exchange rate, is when the currencies of all countries are converted into USD (United States Dollar). The second way is GDP (PPP) or GDP at purchasing power parity (PPP).[1]

  1. The Cultural Landscape An Introduction to Human Geography. James M. Rubenstein. 2017. pp. 209–334. APGEO7.

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