Introduction to Macroeconomics Flashcards
1
Q
What is Macroeconomics?
A
Study of an entire economy
2
Q
What are the flow sections in a free-market flow model?
A
1) Individuals
2) Business
3) Foreign Sector
4) Financial Sector
5) Government
3
Q
What are leakages?
A
Individuals income not spent on domestic consumption
- Taxes
- Savings
4
Q
What are injections?
A
Additions to domestic production not from individuals expenditures
- Investment expenditures
- Government spending
- Export
