Chapter 18- flow of income Flashcards
1
Q
dividends
A
are income received by the owners of the business
2
Q
leakages
A
are ways in which income escapes from the circular flow between households and firms. Savings, imports, taxes
3
Q
injections
A
are additions to the circular flow. investments, exports, govt. spending.
4
Q
aggregate demand
A
measures the total demand from all sources in the economy
5
Q
capital goods
A
are productive assets, acquired by investment, which are expected to make a contribution to future output.
6
Q
aggregate supply
A
a diagram showing total quantities of output in the economy at different price levels.
7
Q
supply constraints
A
occur when demand for scarce resources increases forcing price upwards.
