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What are the requirements of national figure to adjusting?
National figures first require adjusting:
• For population: Dividing Gross Domestic Product (GDP) by total population gives per head income that is SoL (standard national living)
• For domestic inflation: Converting nominal Gross Domestic Product (GDP) in real GDP eliminates inflationary effects
• To establish a usual unit of account. The Gross Domestic Product (GDP) of Somalia and Spain can merely be compared with in terms of a common currency.
Local currencies are converted in a common currency that is US dollars ($).
• To make sure purchasing power parity among countries, the current exchange rate is adjusted than a basket of goods and services can be bought for similar amount of dollars.
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