Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is purchasing power parity?
What is purchasing power parity?
Purchasing power parity (PPP) is a theory that states that the exchange rate between two currencies is in equilibrium when their purchasing power is the same in each of the two countries.
Why is purchasing power parity important?
Why is purchasing power parity important?
Purchasing power parity is important because it helps in comparing the standard of living and economic performance between different countries.
What does purchasing power parity measure?
What does purchasing power parity measure?
Purchasing power parity measures the relative purchasing power of different currencies.
