How is purchasing power parity calculated and why is it, Business Economics

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How is purchasing power parity calculated and why is it

How is purchasing power parity calculated and why is it superior to the exchange rate in making comparisons between per capita income levels in different countries. Why is the international US dollar used in making comparisons? How did Maddison estimate per capita income back to the beginning of the Christian era (year 0 CE), and what do Maddison’s estimates suggest about the Great Divergence? Explain.

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