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September 28, 2023

Big Mac Index Purchasing Power Parity establishes an exchange rate that maintains purchasing power from one country to another. The Big Mac Index is a measure put out to calculate Purc

Big Mac Index

Purchasing Power Parity establishes an exchange rate that maintains purchasing power from one country to another. The Big Mac Index is a measure put out to calculate Purchasing Power Parity. For this discussion, your task is to:

Read the following article about the Big Mac Index:

https://www.economist.com/big-mac-index. It links to an external site.

1. Explain why the Big Mac is a good product to find PPP.

2. Explain why the exchange rate is not always in PPP.

150 words +

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