Without Adjusting for PPP,emerging Economies Contribute About 26% of the Global

question 2

Multiple Choice

Without adjusting for PPP,emerging economies contribute about 26% of the global GDP.Adjusting for PPP,they now contribute approximately 45% 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.