Question

If we use Country A as the base country to calculate a cost-of-living index comparison to Country B and the index number is positive, it means that on average, price levels in Country B are what we would expect if Purchasing Power Parity (PPP) held true? In this case the PPP-adjusted GDP for Country B will be its nominal GDP.

Answer 1

The answer is greater then

Answer 2

Greater than

Step-by-step explanation:

Answer 1:

If the index number used to calculate prices is positive, then it shows that price level in country B is greater than the price level in Country A which is used as the base year. Thus, the blank can be filled by Greater than.

PPP adjusted GDP in this case in country B will be less than its nominal GDP as price level is higher.