Purchasing power parity
economic theory that states that the exchange rate between two countries is equal to the ratio of the currencies' respective purchasing power / From Wikipedia, the free encyclopedia
There are two ways to measure GDP (total income of a country) of different countries and compare them. One way, called GDP at exchange rate, is when the currencies of all countries are converted into USD (United States Dollar). The second way is GDP (PPP) or GDP at purchasing power parity (PPP).[1]