This allows gobal incomes to be compared easily
e.g. in Denmark:
GDP per Capita =US$62,000
GDP per Capita (PPP) = US$37,000
This shows that if a person from Denmark (on their averge wage) went and lived in the USA, that's how much money they would have to spend as a result of a higher cost of living in the USA and also the exchange rate at that time.
THIS MAKES INDICATORS MORE RELIABLE AND COMPARABLE
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