2.4.1 & 2.4.2 - National income & Injections and withdrawals Flashcards
1
Q
Draw the Circular Flow of income model.
A
2
Q
Injections to the Circular flow of income.
A
● Government spending (GS)
● Investments (I)
● Exports (X)
3
Q
Leakages to the Circular flow of income.
A
● Government taxation (GT)
● Savings (S)
● Imports (M)
4
Q
Income vs Wealth
A
● Wealth - A stock of assets.
● Income - A flow of money
5
Q
Define the term national income
A
- Total spending on goods and services
6
Q
Define the term circular flow of income
A
7
Q
Explain the term ‘real income’
A
