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.

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Definitions:

Debits and Credits

The fundamental elements of accounting that represent the entries made in accounts to reflect increases or decreases in balances.

Memorized Transactions

Transactions that are saved in the accounting system for future use, allowing for quick recording of recurring expenses, invoices, or payments.

Saved Transactions

Transactions that have been recorded and stored in a financial system for future reference or use.

Vendors and Expenses

Categories within accounting that track and manage the costs incurred from purchasing goods or services from suppliers.