Absolute Purchasing Power Parity (Absolute PPP) is an economic theory that states the exchange rate between two currencies should equal the ratio of the two countries' price levels, such that a unit of currency in one country can purchase the same amount of goods and services in another country. It is a measure of the relative cost of living and standard of living between countries.
congrats on reading the definition of Absolute Purchasing Power Parity (Absolute PPP). now let's actually learn it.