The Use of Purchasing Power Parity Prices

question 99

Multiple Choice

The use of purchasing power parity prices

• A) decreases the real GDP per person statistics published by the International Monetary Fund.
• B) weakens the validity of cross country comparisons of economic welfare.
• C) increases the amount by which U.S. GDP is larger than that of any other nation.
• D) accounts for differences in the prices of the same goods in different countries when measuring real GDP.

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Definitions:

Subsidiary Channels

Secondary or minor channels or pathways that branch off from a main channel or river.

Main Channels

The primary paths or courses taken by a river or stream within its bed, directing the majority of flow and often deeper than adjacent areas.

Discharge

The volume of water flowing through some stretch of a river or stream per unit of time.

Rate of Flow

The velocity at which a fluid (liquid or gas) moves through a channel, pipe, or porous medium.