Understanding Of Purchasing Power Partities And Their International Comparisons Flashcards
1
Q
What are PPPs?
A
Purchasing power parity - used to measure for the differences in price levels between countries
2
Q
How is PPP calculated?
A
Prices differences between countries and facilitate meaningful international comparisons
3
Q
How are PPPs measured?
A
Measures the total amount of goods/services that a single unit of a country’s currency can buy in another country
