4- National income Flashcards
1
Q
Ways of measuring economic activity from circular flow of income model
A
- National output
- National income
- National expenditure
2
Q
National output definition
A
The value of the flow of goods and services from firms to households.
3
Q
National income definition
A
Income paid by firms to households in return for capital, land and labour.
4
Q
National expenditure definition
A
The value of spending by households on goods and services.
5
Q
When is economy growing?
A
When sum of injections > sum of withdrawals
