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Nominal GDP is not the best measure for comparing industrial products, especially ones that go into products sold to and used by consumers. In PPP GDP terms, th
by Zigurd 6y ago
Nominal GDP is not the best measure for comparing industrial products, especially ones that go into products sold to and used by consumers. In PPP GDP terms, the Chinese economy is larger and PPP GDP is a better measure of how consumers and industrial customers will influence technology development.
- jcranmer 6y agoThe question of nominal versus PPP GDP is a bit complicated, but a basic rule of thumb is that nominal GDP is better if you're measuring trade (since the nominal rate is the actual value you'll get during international exchange transactions), whereas PPP works better for individual cost-of-living or quality-of-life metrics. For measuring gross economy size, I would go with nominal GDP.