Macroeconomics Booklet One Flashcards
Expenditure Method
A way of calculating economic activity as value of the total expenditure within an economy
Gross Domestic Product
The value of goods and services produced in an economy in a given time period, usually a year
Income
A flow of money received, earned it generated over time
Income Method
A way of calculating economic activity as the sum of the total income of the people within an economy
Injections
Money that is added to the circular flow of income from someone other than firms or households (i.e.from aboard for the sale of exports, government spending or investment)
Leakages/Withdrawals
Money that leaves the circular flow of income by going to someone other than firms or households (i.e. to pay for imports or tax deducted) or which does not circulate (i.e. savings)
Macroeconomics
The study of economics at an aggregated scale - either the national or international level
Microeconomics
The study of economics at the scale of individuals, firms and markets
Nominal
Measured using the current prices.
Output Method
A way of calculating economic activity as value of the total output produced within an economy
Real
Measured at constant prices (i.e. the prices for one specific year) in order to remove the impact of inflation on data collected over time
Wealth
The value of a stock of assets (items with a market value and capable of generating an income) at a given moment in time
