living standards

GDP at PPP compared to GDP in $US

GDP at PPP compared to GDP in $US

A look at how GDP per capita in $US gives different values when measured at purchasing power parity. GDP at Purchasing Power parity (PPP) takes into account variations in living costs. PPP is an attempt to work out how much currency will be needed to buy the same quantity of goods and services in different countries. If this can be done, it can show the underlying exchange rate between the two different countries and a more accurate…

GDP per Hours Worked v GDP per Capita

GDP per Hours Worked v GDP per Capita

Readers Question: Which is more useful for determining living standards – GDP/capita and GDP/working hour GDP per capita measures national income per population GDP per working hour measures national income / total hours worked in economy. source: US bureau of labour statistics GDP per capita would probably be the first measure to look at. It is the most obvious reflection of national income per person. GDP per hours worked is also useful for determining the productivity of an economy. Though it…