Question

Purchasing power parity is ________. the total income received by all sectors of an economy within a nation the value of goods and services that can be purchased with one unit of a country's currency the exchange rate in the international currency market an adjustment for prices that reflects the amount of goods that consumers can buy in their home country, using their own currency and

Answer 1

Merasure

Step-by-step explanation:

• It is the measure of prices at different locations using a common good or goods to construct the real purchase, between various currencies.

• Says that no transaction cost and n trade barriers for a particular good then the prices should be the same for each location. PPP exchange rate marched the market exchange rates, as they are more stable and less affected by tariffs, but are used for comparison like the GDP.

• This is the total income pf all the sectors of the economy and within all the nations that buy one unit of the country currency rate in the internal market. The PPP helps to cost but excludes the profits and does not consider the quality of goods in certain countries.