Econom macro

Question 1

Circular flow model

Answer 1

Know how

Question 2

List types of leakages

Answer 2

savings
taxes
imports

Question 3

List types of injections

Answer 3

Investments
Govt spending
exports

Question 4

Size of circular flow in relation to size of leakages and injections

Answer 4

If leakages is greater than injection the circular flow is SMALLER

If leakages is smaller than injection circular flow Is bigger

Question 4

Size of circular flow in relation to size of leakages and injections

Answer 4

If leakages is greater than injection the circular flow is SMALLER

If leakages is smaller than injection circular flow Is bigger

Question 5

Define GDP

Answer 5

Value of all final goods and sieves produced in an economy in a year

Question 6

Benefits of GDP

Answer 6

gives a measure of growth
gives a measure of living standards

Question 7

Methods of GDP

Answer 7

Income- adding together
Output - sums gross value by adding each producer
Expernditure method- how much is spent on

Question 8

Issues with using GDP pertaining to growth

Answer 8

Risk of double counting
Informal activity
Erros given ay collection