I am a layman in economics. Please answer the question in a simple language so that I can understand?

Question

Difference between GDP PPP(Purchase power parity) and GDP nominal. What is taken ito account in measuring a country's wealth

Answer 1

GDP PPP (I assume you mean real GDP) takes into account if prodcution increased or decreased, regardless of changes in the purchasing power of the currency.

Nominal GDP is GDP not adjusted for the change in the PPP of a currency.

Answer 2

To compare the GDP of countries  you must convert the GDP into a common currency, usually US dollars. The nominal GDP is converted using the exchange rate. To find the GDP (PPP)  a market basket of   goods consumed  by a typical house hold in a country is price in the country and in the US, and the GDP is converted to dollars using this ratio.