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Research on the generation effect shows that:
Purchasing Power Parity
An economic theory and a method used to determine the relative value of different currencies and the exchange rate needed to equalize the purchasing power of different currencies.
Consumer Price Index
A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.
Output Per Person
A measure of productivity calculated by dividing total output (such as GDP) by the number of people in the workforce or population.
Cross Price Elasticity
A measure of how the demand for a product changes in response to a change in the price of another related product.
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