Purchasing power of the dollar

Purchasing power of the dollar

The amount of goods and services that can be exchanged for a dollar as compared with amount of a previous time period.

Purchasing Power of the Dollar

The goods and services that $1 can buy when compared to other currencies or to the dollar in a different time period. One can use the purchasing power of the dollar to gauge both the dollar's value in the currency market and to measure inflation. See also: Exchange rate.