Purchasing power parity (PPP) is a popular macroeconomic analysis metric used to compare economic productivity and standards of living between countries. PPP involves an economic theory that compares different countries' currencies through a "basket of goods" approach. That is, PPP is the exchange ra...
What Is Purchasing Power Parity? Purchasing power parity or PPP describes the situation in whichtwo currencies have the same purchasing power, so it would cost you exactly the same amount of money to buy the same product in both countries. With PPP, the British loaf and the American loaf wou...
The regional GDP calculated at purchasing power parities (PPP) used in many studies tends to be too optimistic to indicate the economic damages, particularly in developing countries. Hence, GDP deflated at local consumer price index is recommended to indicate the regional rather than global economic...
Customer lifetime value can be calculated in different ways. The basic CLV formula is: Customer Lifetime Value = Average Purchase Value × Average Purchase Frequency × Average Customer Lifespan This simple equation estimates the total revenue you earn from an average customer. Here’s what each ...
Define a price index. Explain what a price index measures? How is it calculated? A) What is meant by the term international trade? B) In the context of international trade, explain the concept of comparative advantage with specialization. C) Define and briefly...
Inflation is a gradual loss of purchasing power that is reflected in a broad rise in prices for goods and services over time. The inflation rate is calculated as the average price increase of a basket of selected goods and services over one year. High inflation means that prices are ...
Results are quickly calculated and candidates are given a percentage score that indicates if they passed or failed. Mock exam scoring systems are good indicators of how candidates will do on the actual exam and the process for grading mock CFA exams is much simpler than how CFA exams are ...
As a result, the short-term net impact of digitization is unclear. We have found that digitization has not yet reached scale, with a majority of the economy still not digitized. The McKinsey Global Institute has calculated that Europe overall operates at only 12 percent of digital potential, ...
CLV can be calculated by multiplying the average annual profit of a customer by the average duration of customer retention. Customer lifetime value is important because it informs how much your company can/should spend on customer acquisition. ...
Real GDP is calculated by dividing nominal GDP by a GDP deflator. Unlike real GDP, nominal GDP uses current market prices and doesn't factor inflation into its calculation. Understanding Real Gross Domestic Product (GDP) Real GDP is a macroeconomic statistic that measures the value of the goods...