What is Purchasing Power Parity?

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I'm only taking AS Economics so i probably only need to know enough for Multiple Choice questions.

Posted Wed 10th October, 2012 @ 06:54 by Alex

1 Answer

  • 1 vote

Im taking AS Economics too so I think this is the definition you need to know, but my exam board is AQA so it maybe slightly different for other exam boards.

Purchasing power parity (PPP) is a theory of long-term equilibrium exchange rates based on relative price levels of two countries.

Answered Wed 10th October, 2012 @ 19:04 by Maryam