Is it true that the poorer the country the bigger the gap between PPP and nominal GDP?

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2007-09-18 23:09:34 · 3 answers · asked by Anonymous in Social Science ➔ Economics

PPP stands for Purchasing Power Parity

2007-09-18 23:24:52 · update #1

Not always, it can also be a function of manipulated currency exchange rates.

2007-09-19 02:53:29 · answer #1 · answered by Anonymous · 0⤊ 0⤋

GDP is a known term, but what the PPP stands for?

2007-09-18 23:19:13 · answer #2 · answered by starsysmzg 3 · 0⤊ 0⤋

Yes. It is called the Penn effect. See
http://en.wikipedia.org/wiki/Penn_effect

2007-09-19 02:10:00 · answer #3 · answered by meg 7 · 0⤊ 0⤋