According to researchers Summers and Heston from the University of Pennsylvania, how is the GDP price level calculated using the purchasing power parity (PPP) exchange rate and the actual exchange rate?

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Both exchange rates are expressed as the domestic currency price of the US dollarNeither exchange rate is converted into international dollarsBoth exchange rates are fixed or peggedBoth exchange rates are adjusted using the Big Mac PPP method

Explanation

The GDP price level is determined by taking the ratio of the PPP exchange rate to the actual exchange rate, where both rates are represented as the domestic currency price of the US dollar. This approach allows for a consistent comparison of price levels across countries.