how the Marco economy works Flashcards
1
Q
national income
A
refers to the income of an economy earned by all workers and businesses over a period of time
2
Q
how to calculate national income
A
can be calculated in three ways;
expenditure method
income method
output method
3
Q
expenditure method
A
involves adding up all the spending over a period of time.
4
Q
what is added to calculate national income
A
Consumption + investments + government expenditure + net exports.
