Which of the Following Best Describes Purchasing Power Parity

Multiple Choice

Which of the following best describes purchasing power parity?

A) total quantity of goods and services produced by an economic system
B) total quantity of goods and services that can be purchased with one paycheck
C) total quantity of goods and services that could have been purchased if one's pay rose in the same proportion as inflation
D) the principle that exchange rates are set so that prices of similar products in different countries are about the same