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Purchasing Power Parity (PPP)

195 ratings | 25164 views
GCSE Economics
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Text Comments (32)
cagri (14 days ago)
G man knows what's up
Helen Ryan (1 month ago)
A very clear explanation. However, I am a little confused. If a basket of goods is 8 Big Macs costing U$ 2 = U$ 16, in Japan would the PPP be $6 x 8 Big Macs = $48?
Prateek Kumar Verma (21 days ago)
[email protected] is WITH RESPECT TO a particular country. It is just like fixing an axis so that one can compare economies. Here in this video, USA has been taken as reference hence [email protected] is calculated W.R.T. US(taking US cost for big mac). If you want to calculate same W.R.T. Japan then it would be $48 (8*$6) for US and $18 (3*$6) for Japan.
Sarason Salas (1 month ago)
Which basically means that when in the US the $16 gets you 8 Big macs...Now for you to get the same quantity (8) of Big macs in Japan @ $6 each you would need to have $48.
MrVpassenheim (5 months ago)
That was beautiful!
Krisjan Korf (8 months ago)
RIP headphone users @ 5:39
G Conomics (8 months ago)
Haha, apologies!
Loka Man (8 months ago)
really you are so great , best simple explanation, thanks alot
Evocative (9 months ago)
Best explanation on youtube, thank you.
Iam confused with my country.. Gdp ppp of my country is 3 times than nominal GDP
G Conomics. I live in indonesia... And i wanna ask you more... What is the real GDP per capita of my country?? I see many people rich in here.. But with many poor people too.. Inequality is quite high.. Because our geography is Archipelago.. Its make it harder to share the wealth across the country
G Conomics (9 months ago)
It will be a consequence of the purchasing power of the USD in your country - where do you live?
G Conomics. My country have 4000 USD Per Capita Nominal GDP. And 13000 USD GDP PPP. Why?
G Conomics (9 months ago)
Please clarify your question.
Tim Felsky (9 months ago)
Lighting at the end a bit frightening mate.
James Lester (9 months ago)
Why does the US PPP not reduce to $8?
G Conomics (9 months ago)
James Lester if it reduced to $8, the US could only purchase 4 Big Macs rather than 8.
Fox Boucher (11 months ago)
Alija Saracevic (11 months ago)
Very helpful!
Keenan Patel (1 year ago)
Does that mean that the yen is overvalued
G Conomics (1 year ago)
Keenan Patel yes, that is correct.
Brunxs20 (1 year ago)
Got a jumpscare at 5:30 lol :0
Brunxs20 (1 year ago)
I mean 5:40 xD
i try to understand all those strategies of Purchasing power in parity
Radha Madhav (1 year ago)
help full
Carlos Baide (1 year ago)
Very good explanation, thank you very much!
berk (1 year ago)
Great video for those looking for a simple explanation for PPP. Cheers.
jack pearce (1 year ago)
Mo X Deen (1 year ago)
Mo X Deen (1 year ago)
G Conomics (1 year ago)
I will be uploading one video per week on each extract.
Roshan Beadle (1 year ago)
Very helpful, thank you.

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