Macroequillbrium, leakages, injections 1 (J) done

Question 1

macroeconomics

Answer 1

the branch of economics concerned with large-scale or general economic factors

Question 2

AD =

Answer 2

C + I + G + (X-M)

Question 3

C:

Answer 3

consumption

Question 4

I:

Answer 4

investment

Question 5

G:

Answer 5

government

Question 6

X:

Answer 6

exports

Question 7

M:

Answer 7

imports

Question 8

Y:

Answer 8

Income

Question 9

total output=

Answer 9

total income = total expenditure

Question 10

4 resources

Answer 10

land (rent)
labour (wages)
capital (interest)
enterprise (profit)

Question 11

Y=

Answer 11

C + I + Gs

Question 12

Leakages=

Answer 12

savings + taxation + imports

Question 13

Injections=

Answer 13

investment + government + exports

Question 14

If leakages are more than injections, income

Answer 14

falls

Question 15

If leakages are less than injections, income

Answer 15

rises

Question 16

Equilibrium is achieved when

Answer 16

total leakages = total injections
S + T + M = I + Gs + X

Question 17

Leakages definition

Answer 17

income withdrawn from direct flow between households and firms

Question 18

Injections definition

Answer 18

money received by Australian producers that has not come directly from Australian households

Question 19

Economy will be in a downturn / reccesion when

Answer 19

total leakages exceed total injections, aggregate income and expenditure will fall

Question 20

Economy will be in an upswing when

Answer 20

total leakages are less than total injections , aggregate income and expenditure will rise