POLS 242 Chapter Notes - Chapter 4: Unemployment Benefits, Neoliberalism, Invisible Hand
28 Sep 2016
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Document Summary
Political economy - the interaction or interrelationship between politics and the economy in a given country or internationally, to include how politics affects economies and how economies affect politics. Gross domestic product (gdp)- the total value of of goods and services produced in a given country or territory: per capita gdp is divided by the population. Gross national income (gnp) - a measure of the total income of all of a country"s citizens whether living home or abroad. Most of the time during comparisons people try to compare the wealth of individuals opposed to countries so in order to find out we use gdp/capita. Purchasing power parity (ppp) - a way to adjust incomes of different countries to account for cost of living. After you adjust for ppp you can more accurately compare two individuals from different countries i. e 40000 can after ppp + 35000 usd ( if you were comparing the wealth of an american to a canadian)
