Economic Development Indices Questions
PPP, or purchasing power parity, is used in economic development analysis to compare the relative purchasing power of different countries or regions. It takes into account the differences in prices of goods and services between countries, allowing for a more accurate comparison of living standards and economic performance. By using PPP, economists can adjust for the variations in exchange rates and measure the real value of goods and services produced in different economies. This helps in assessing the economic development and standard of living across countries, as well as in making international comparisons and policy decisions.