GDP measures the total monetary value of goods and services produced in a country. GDP per capita divides the total GDP by population to determine the average amount of money each person makes. There are two main ways to measure and compare GDP between countries - GDP at exchange rate (nominal GDP), which converts currencies to USD, and GDP at purchasing power parity (PPP), which accounts for differences in local costs. The Big Mac index uses the price of a Big Mac in different countries to measure differences in PPP. Exchange rates show the value of one currency in terms of another and are used to convert between currencies. Population pyramids graphically display the age and sex distribution of a country's population and can indicate trends like high birth

1. GDP- Gross Domestic Product
• GDP is how much money a country makes
GDP per capita is the total GDP divided by the population or “the average
amount of money each person makes” “PER CAPITA=PER PERSON”
There are two ways to measure GDP of different countries and compare
them. One way, called GDP at exchange rate (nominal), is when the
currencies of all countries are converted into USD (United States Dollar). The
second way is GDP (PPP) or GDP at Purchasing Power Parity (PPP).
PPP (Purchasing Power Parity) is how much of a local good (like real estate,
labor, or locally grown produce) a person can buy in their country
Nominal is roughly how much of an internationally traded good (diamonds,
DVD players, Snickers bars) a person can buy in their country.

2. Big Mac Index
• The Big Mac index, also known
as Big Mac PPP, is used to measure
the purchasing power parity (PPP)
between nations, using the price
of a Big Mac as the benchmark.
For example, if the price of a Big Mac is $4.00 in the U.S. as
compared to 2.5 pounds sterling in Britain, we would expect
that the exchange rate would be 1.60 (4/2.5 = 1.60).

3. Currency Exchange
Exchange Rate - the value of one currency for the purpose of
conversion to another.
The USD/ 1 unit (foreign currency) figure tells us how to convert one
unit of the foreign currency to the US currency.
The Units/ 1 USD figure tells us how to convert one unit of the US
currency to the foreign currency.
• To convert USD500 to CAD-> USD500 × 1.0219 = CAD510.95
Currency Country Code USD/1 unit Units/ 1 USD
Canadian Dollar CAD 0.9788 1.0219

4. Population Pyramids
Features of a population
pyramid.
• Population is divided into 5
year age groups.
• Population is divided into
males and females.
• The percentage or number
of each age /sex group is
given.

5. General Shapes show overall trends
LEDC-Less Economically Developed Country MEDC- More Economically Developed Country

6. Analyzing a MEDC’s (More Economically
Developed Country) pyramid

7. Analyzing a LEDC’s (Less Economically Developed
Country) pyramid