article in the Wall Street Journal discussed the size of the Chinese economy relative to the U.S. economy. Rather than use the current nominal exchange rate to convert the value of Chinese Gross Domestic Product (GDP) into U.S. dollars, the article used GDP data calculated using exchange rates on a "purchasing-power parity basis, which adjusts for how much the same item costs in different countries."

1. Comparing GDP levels across countries using current nominal exchange rates ignores

a. the impact of other world currencies on GDP

b. output differences for the same good across countries

c. price differences for the same good across countries

2. Without adjusting for PPP, countries suffering from high inflation rates would have misleadingly

a. low

b. high

3. GDP's relative to other countries. Adjusting for PPP allows GDP comparisons to more accurately measure

a. production

b. inflation

c. price

d. differences across countries.