Macro Flashcards
1
Q
What does the Circular Flow of Income show us?
A
It shows us how money moves through an economy in a constant loop from producers to consumers and back again.
2
Q
What do Households give Firms?
A
Factors of Production and Consumer Expenditure
3
Q
What do Firms give Households?
A
Goods and Services and Factor Incomes
4
Q
What are the injections?
A
Investments + Gov Spending + Exports (I+G+X)
5
Q
What are the withdrawals/leakages ?
A
Savings + Taxation + Imports (S+T+M)
6
Q
What are the Macroeconomic objectives?
A
Economic growth, Unemployment rate, Inflation rate, Balance of Current Account, Distribution of Income
7
Q
What do the letters Q + Y + C represent?
A
Q=Output, Y=Income, C=Expenditure
