Roughly equivalent in each country.
Purchasing power parity theory states that given relatively efficient markets, the price of a "basket of goods"
Two currencies are floated at once in efficient markets and valued same in the countries the markets are been situated which are relatively efficient in terms of trade.
Purchasing power parity establish a relationship between the price of goods with market base of goods. It contains sample of all goods and services priced for the exercise. They are usually taken for a long period of time to analyze and apply them as per their market standards.
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