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Why is the GDP of Madagascar 500 but the real GDP is 1500?

User Alophind
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Answer:

The GDP of Madagascar is 500 and the real GDP is 1500 because GDP is often measured in terms of purchasing power parity (PPP), which takes into account the cost of goods and services in a given country. Madagascar is considered to be a low-income country and as such, the cost of goods and services is much lower than what it would be in a higher-income country. Therefore, the PPP value of Madagascar's GDP is much higher than the nominal GDP.

User Alockrem
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