Question

purchasing - power parity describes the forces that determine
prices in the short run.
prices in the long run.
exchange rates in the short run.
exchange rates in the long run.

Explanation:

Purchasing - power parity (PPP) is an economic theory that helps in determining exchange rates in the long - run. It is based on the idea that in the long - run, the exchange rate between two countries should adjust so that a basket of goods and services costs the same in both countries.

Answer:

D. exchange rates in the long run.