National Income Flashcards
1
Q
national income
A
measures the monetary value of the flow of output of goods and services produced in an economy over time
2
Q
circular flow model
A
external sector
households – government – firms
financial sector
3
Q
injections into the economy
A
investment, exports, government spending
4
Q
leakages in the economy
A
savings, imports, taxation
5
Q
income
A
a flow concept, earned over time from income generated from wealth (e.g. renting a house)
6
Q
wealth
A
a stock concept, referring to value of assets that you have accumulated from investing past income into (e.g. value of house)
