Terms and concepts

Purchasing power parity (PPP) is an economic theory that allows the comparison of the purchasing power of various world currencies to one another. It is a theoretical exchange rate that allows you to buy the same amount of goods and services in every country

inflation: An increase in the general level of prices or in the cost of living.

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  economic growth: The increase of the economic output of a country.
  
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  physical capital: A physical factor of production (or input into the process of production), such as machinery, buildings, or computers.
  
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  human capital: The stock of competencies, knowledge, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.
  
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