Question

Purchasing power parity is used to compare the gross domestic product between

Answer 1

The correct answer is: "countries".

The purchasing power parity (PPP) is an economic theory which compares different currencies from two countries by using a specific basket of goods. The prices of the goods, denominated in the two different currencies, should be equal after deducing the effect of the exchange rates between the two currencies and of the different interest rates existing in the two countries. But such equality does not hold in reality and one of the currencies usually has a greater purchasing power than the other.

The PPP, relates to GDP in the sense that it helps to deduce the purchasing power of the inhabitants of a country, by determining whether they can purchase more goods and services than the inhabitants of another country, with an equivalent amount of currency.

Answer 2

Countries is the answer to your question! Hope this helps!