Economics

Terms

  • ​Consumer Price Index (CPI) - weighted average of market basket of common consumer goods and services

  • ​Market Basket - fixed list of items, in given proportions, commonly used to track the progress of inflation

  • ​The Big Mac index - published by The Economist as a way of measuring the purchasing power parity (PPP) between two currencies and provides a test of the extent to which market exchange rates result in goods costing the same in different countries.

  • ​Purchasing Power Parity (PPP) - is a measurement of prices in different countries that uses the prices of specific goods to compare the absolute purchasing power of the countries' currencies.

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