Question
What is purchasing power?
The amount of money someone wins.
The number of items someone is allowed to buy.
How fast someone can earn money.
What an individual can buy in terms of goods and services.
The amount of money someone wins.
The number of items someone is allowed to buy.
How fast someone can earn money.
What an individual can buy in terms of goods and services.
Answers
GPT-4o mini
Purchasing power refers to **what an individual can buy in terms of goods and services**. It reflects the value of money in terms of the quantity of goods and services that can be purchased with it. When prices rise (inflation), purchasing power decreases, meaning that the same amount of money will buy fewer goods and services. Conversely, when prices fall (deflation), purchasing power increases.