If You Know That a Meal Costing $40 in the United

Multiple Choice

If you know that a meal costing $40 in the United States would cost $2 in Bangladesh and this is representative of the relative prices of most goods, you also know that:

A) purchasing power parity would decrease comparative GDP for Bangladesh.
B) purchasing power parity would increase comparative GDP for Bangladesh.
C) GDP using market prices would overstate the value of output for Bangladesh.
D) GDP using market prices would overstate the value of output for the United States.