When calculating purchasing power parity, what is being compared?

money needed to buy an item in different currencies
the number of imports and exports within one country
prices on the market for all goods and services available
total goods and services produced between two nations

The calculation of purchasing power parity comparison is in money needed to buy an item in different currencies. Thus the 1st option is correct.

What is purchasing power parity?

Purchasing power parity is the theory in economics which compares or measures the prices of the other country and tries to equalize the power of the currencies that of the other countries.

Thus it involves the currencies comparison with different countries. It is calculated by multiplying the cost of a particular product or service with the first currency by the price of the same goods or services in U.S. dollars.

Thus the 1st option is correct.

Learn more about purchasing power here:

https://brainly.com/question/14892961

#SPJ2

When calculating purchasing power parity, what is being compared? money needed to buy an item in different currencies the number of imports and exports within one country prices on the market for all goods and services available total goods and services produced between two nations

Respuesta :

What is purchasing power parity?

Otras preguntas

When calculating purchasing power parity, what is being compared?

money needed to buy an item in different currencies
the number of imports and exports within one country
prices on the market for all goods and services available
total goods and services produced between two nations