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This figure is based on purchasing power parity ( PPP ), which basically suggests that prices of goods in countries tend to equate under floating exchange rates and therefore people would be able to purchase the same quantity of goods in any country for a given sum of money.
How does the United States measure poverty? The United States determines the official poverty rate using poverty thresholds that are issued each year by the Census Bureau. The thresholds represent the annual amount of cash income minimally required to support families of various sizes.