The Macroeconomy Flashcards
1
Q
National Income
A
A country’s total output
2
Q
GDP
A
The total ouput produced in a country
3
Q
GNI
A
The GDP + net income from abroad
4
Q
Mention 3 ways to calculate GDP
A
- Income method
- output method
- expenditure method
5
Q
How does the income method work?
A
Totaling all the incomes earned in producing the country’s output
6
Q
How does the output method work
A
By totaling the production of all the goods and services in the country.
7
Q
How does the expenditrue method work
A
by totaling all the spending on the country’s output
8
Q
Circular flow of income
A
