Question: Purchasing Power Parity (PPP) is a calculation that compares the price of a given good in various countries, using the prices of particular goods to

Purchasing Power Parity (PPP) is a calculation that compares the price of a given good in various countries, using the prices of particular goods to calculate how much currency can buy a given amount of goods in each country.

Why is it being criticized in terms of its assumptions on prices of goods and services and currency exchange rates? What is the argument behind these criticisms?

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