Without Adjusting for PPP,emerging Economies Contribute About 30% of the Global

question 13

Multiple Choice

Without adjusting for PPP,emerging economies contribute about 30% of the global GDP.Adjusting for PPP,they now contribute approximately 50% of the global GDP.The reason there is a huge difference between the two measures is because 

• A) the cost of living in emerging economies tends to be lower than that in developed economies. 
• B) the purchasing power parity is much higher in emerging countries. 
• C) the population in emerging economies is much higher than that in developed economies. 
• D) the deficit spending in emerging economies is much larger than that in developed economies.

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