The conversation between human and AI assistant.
What is a more useful measure to judge a nation's economy: GDP (nominal) or GDP (PPP) and why?
Interesting. Are there any drawbacks to using GDP (PPP)?
One drawback is that PPP calculations can be difficult and controversial, as they rely on assumptions about exchange rates and the accuracy of price indices. Additionally, some economists argue that nominal GDP is a better indicator of a country's economic power on the world stage, as it reflects the actual amount of goods and services a country produces. However, most experts agree that a combination of both measures provides a fuller picture of a country's economy.