How Economics and politics related to each other?

Question

How Economics and politics related to each other?

Answer 1

Politics affects government expenditures (quite big share of GDP, gov-consumption, gov-investment), legislation (trade barriers and environment), social condition (so it affects labor force)  thus has very strong impact on economy. While economy provides environment for politics to finance them, manipulate society (promises and interpretation of economic events, etc).

All in all I would say that there is direct interconnection between politics and economy, moreover - people go to the politics to control their wealth thus economy.

Answer 2

it's easy dude, if there is turmoil in your country caused by political policy or social unrest or troubled in the government, what happens to your country's inflation rate or the exchange rate?