Which of the following best describes purchasing power parity?
A) total quantity of goods and services produced by an economic system
B) total quantity of goods and services that can be purchased with one paycheck
C) total quantity of goods and services that could have been purchased if one's pay rose in the same proportion as inflation
D) the principle that exchange rates are set so that prices of similar products in different countries are about the same
E) the principle that a market economy determines supply and demand for consumer products

Question

Quizplus · Accepted Answer

D) Purchasing power parity gives us a good idea of what people can actually buy with the financial resources allocated to them by their respective economic systems.

Which of the Following Best Describes Purchasing Power Parity