circular flow of income Flashcards
how do economists measure the amount of money flowing throughout the economy over a period of time
national income accounts
what do national income accounts measure
3 momentary flows that operate within a economy
spending- total expenditure in economy
output -total value of goods and services
incomes-income generated through production
equasions to caculate the figure of nantional income
total spending on goods and services - national expenditure/ AD
total income- national income
total output- nantional output/ AS ?
whats GDP
total market value of all goods and services produced within an economy during a specific time
whats GNI
income of uk residents generated abroad as well as in the country
claculating GDP methods
expenditure method - calculating AD
c+i+g+(x-m)
income method
output method
