Economics A-Level
Purchasing Power Parity
What Purchasing Power Parity means in Economics A-Level, as defined for AQA.
Definition of Purchasing Power Parity
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Reference: AQA
A conversion of real GDP per capita into a common currency to account for differences in the cost of living when comparing countries.
Topics that use Purchasing Power Parity
- Uses of national income data (AQA A-Level)
Related terms
- Income distribution
- International comparisons
- Living standards
- Negative externalities
- Purchasing power parity (PPP) exchange rates
- Real GDP per capita
- Informal economy
- Market exchange rates
Using Purchasing Power Parity in the exam
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