Macroequillbrium, leakages, injections 1 (J) done Flashcards

1
Q

macroeconomics

A

the branch of economics concerned with large-scale or general economic factors

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2
Q

AD =

A

C + I + G + (X-M)

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3
Q

C:

A

consumption

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4
Q

I:

A

investment

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5
Q

G:

A

government

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6
Q

X:

A

exports

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7
Q

M:

A

imports

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8
Q

Y:

A

Income

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9
Q

total output=

A

total income = total expenditure

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10
Q

4 resources

A

land (rent)
labour (wages)
capital (interest)
enterprise (profit)

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11
Q

Y=

A

C + I + Gs

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12
Q

Leakages=

A

savings + taxation + imports

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13
Q

Injections=

A

investment + government + exports

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14
Q

If leakages are more than injections, income

A

falls

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15
Q

If leakages are less than injections, income

A

rises

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16
Q

Equilibrium is achieved when

A

total leakages = total injections
S + T + M = I + Gs + X

17
Q

Leakages definition

A

income withdrawn from direct flow between households and firms

18
Q

Injections definition

A

money received by Australian producers that has not come directly from Australian households

19
Q

Economy will be in a downturn / reccesion when

A

total leakages exceed total injections, aggregate income and expenditure will fall

20
Q

Economy will be in an upswing when

A

total leakages are less than total injections , aggregate income and expenditure will rise

21
Q
A