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PPP vs. nominal GDP of a country?
GDP Which method is most useful? In my opinion, the PPP method is most useful as PPP takes into account cost of living and inflation rates of countries, rather than using just exchange rates which may distort the true While differences in income, nominal GDP method to only the exchange rate exchange market 'A country always mention their GDP Nominal GDP PPP and then "If you see the economic history, GDP measured in PPP in order to get the final idea http://en.wikipedia.org/wiki/List_of_regions_by_past_GDP_ income country (PPP) What everybody says?
Depends on what you are looking for. In my opinion PPP is especially useful in the discussion of measures of GDP per capita and income individual and the relative costs, but generally inadequate in the discussion of "nations entire GDP. Nominal GDP tells you how much value as an economy produces agreed to buy the world – USA produces X, China produces Y, Z France produces – which is usually what you want when it comes to national GDP. Because the world is one in last instance. I think it's a mistake to PPP measures here. However, this does not necessarily mean to say if an American, a Chinese person, or a Frenchman can afford food and rent right there in its domestic market, therefore, PPP is useful for that application.
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