Final answer:
PPP stands for purchasing power parity, an exchange rate that allows for equal comparison of the prices of internationally traded goods across countries, calculated by economists at the World Bank.
Step-by-step explanation:
PPP is an acronym for purchasing power parity. Purchasing power parity (PPP) is a metric used in macroeconomics to determine the economic productivity and standards of living between countries. It is the exchange rate that equalizes the prices of internationally traded goods across different countries, thus facilitating fair comparisons of economic data across different countries with varying currencies.
A group of economists from the International Comparison Program, which is run by the World Bank, is responsible for calculating the PPP exchange rates for all countries. They do this by conducting comprehensive studies on the prices and quantities of goods that are internationally tradable, ensuring that they account for the cost of living and inflation rates when comparing the economic strength of different countries.