Macroeconomics Booklet 1 Flashcards
(12 cards)
Gross domestic product
The value of all goods and services produced in an economy in a given time period (usually a year).
Income
Money received, earned, or generated over time.
Income method
Total of firms expenditure on the factors of production (CELL) from households.
Expenditure method
Total value of everything households in an economy buy.
Output method
Add together the value of all goods and services provided by firms in an economy.
Wealth
Assets that are capable of generating an income and have a market value.
Injections
Money that is added to the circular flow of income.
Exports
Government spending
Investment
Leakages/withdrawals
Money that leaves the circular flow of income.
Imports
Taxation
Saving
Macroeconomics
The study of economics at an aggregated scale.
Microeconomics
The study of economics at the scale of individuals, firms, and markets.
Nominal
Measured using current prices.
Real
Measured at constant prices (to account for inflation).
