Explain it

3.3.5 β€” 1 short write-up

A checkpoint, not a test

Explain the PPP problem

Explain, in your own words, why comparing a plain (non-PPP) GDP figure from one country to a PPP-adjusted GDP figure from another country would give a misleading result.

Think about what PPP is adjusting for, and what happens if only one of the two numbers has that adjustment applied.