Which type of exchange rate is best to use when comparing countries real gdp?

  Two types of exchange rates can be used to compare GDPs:

1. Market exchange rates and

2. Purchasing power parity market exchange rates and purchasing power parity

Explanation:

Usually US dolaars is used as a currency

Since GDP is measured in a country's currency, in order to compare different countries' GDPs, we need to convert them to a common currency.

   One way to compare different countries' GDPs is with an exchange rate, the price of one country's currency in terms of another.

   GDP per capita is GDP divided by population.

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