Ch.7 The Circular Flow Model Flashcards
1
Q
Formula for GDP
A
c+i+g+x-im
2
Q
Formula for Netexports
A
x-im
3
Q
Formula for balanced trade
A
X=im
4
Q
Formula for trade deficit
A
X<im
5
Q
Formula for trade surplus
A
X>im
6
Q
Formula for total savings
A
S=yd-c
7
Q
Formula for total savings
A
S=yd-c
8
Q
Formula for consumption
A
C=yd-s
9
Q
Formula for balanced budget
A
T=g+tr
10
Q
Formula for budget surplus
A
T>g+tr
11
Q
Formula for Budget Deficit
A
T<g+tr
12
Q
Formula for use of disposable income
A
YD=c+s
13
Q
Formula for disposable income
A
YD=y+tr-t
14
Q
Formula for total income
A
Y=w+pie+i+r
15
Q
I.M
A
Imports
16
Q
X
A
Exports
17
Q
I
A
Investment spending
EX: machinery equipment
18
Q
GDP
A
Gross domestic product
19
Q
G
A
Govt. borrowing of good/services
20
Q
S
A
Private savings
21
Q
T
A
Taxes
22
Q
C
A
Consumer spending
23
Q
Y
A
Total Income
24
Q
TR
A
Govt transfer
25
Investment Spending
Spending on productive physical capital
EX: Construction of buildings
26
Imports
Goods/services PURCHASED by res. of other countries
27
Exports
Goods/services SOLD to residents of other countries
28
Govt Purchases on goods/services
TOTAL purchases by fed govt.
29
Govt. Borrowing
Funds borrowed
EX: Financial Aid
30
Private Savings
Disposable income not spent
31
Disposable Income
equal to income after household pays taxes+govt transfers
32
Govt transfers
payment by govt
EX: stimulus checks
33
Bond
Borrowing form that pays interests
34
Stock
Share of ownership held by shareholder
35
Households
Own factors of production; labor, land and capital
36
Consumer Spending
Household spending on good/services
37
National Account
Tracks flow of money b/w diff. sectors of economy
