Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/25

Click to flip

25 Cards in this Set

  • Front
  • Back
Circular Flow of Income and Expenditure
HH FIRMS
GDP is
MARKET VALUE
During yr. or quarter
Final goods
within country
PRODUCED goods
most % of GDP is
consumption
Factors of Production
land
buildings
labor
capital
entreprenuership
Say's Law
supply creates its own demand
Payments
wages
profit
rent
Interest
Households choose
what to consume
Firms choose
what/how to produce
Flow from households to firms
expenditure goods and services
Flow of goods and services from firms to households through
goods markets
flow of...from households to firms
factors of production
...from firms to households through...
factor incomes...factor markets
Total Expenditure
= total income
Net Taxes =
Total Income- consumption expenditure - saving
Total Expenditure (income) =
consumption expenditure + Investment + Govt. expenditure + Net Exports
(C + I + G + NX)
GDP =
(Expenditure Approach)
C + I + G + NX
Income Approach
W
I
=NDPAFC
I
D
=GDP
SD
=GDP (EA)
Statistical Discrepancy =
GDP Expenditure Total - GDP Income Total
GNP=
GDP + Net Factor Income from Abroad
National Income =
GNP- depreciation- statistical discrepancy
Disposable Personal Income =
National Income (households)
- Retained Profits
+transfer payments
- Personal Income taxes
% Disposable Personal Income of National Income =
DPI/ National Income
Next Exports =
net income - consumption expenditure- investment- govt. expenditure on goods and services
(Y-C-I-G)
Net Exports =
Exports - Imports
Imports =
Exports - Net Exports