PREHEAT oven to 350° F. Grease and flour 13 x 9-inch baking pan.
COMBINE flour, baking powder, baking soda, salt, cinnamon and nutmeg in medium bowl. Beat sugar, oil, eggs and vanilla extract in large mixer bowl until well blended. Gradually stir in flour mixture. Stir in carrots, pineapple and juice, nuts and morsels. Pour into prepared pan.
BAKE for 37 to 42 minutes or until wooden pick inserted in center comes out clean. Cool completely in pan on wire rack. Dust with powdered sugar.