Chapter 18 - The circular flow of income

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  • Created on: 24-03-16 12:15
income recieved by the owners of businesses and shares
dividends
1 of 10
ways in which income escapes the circular flow between households and firms
leakages
2 of 10
Additions to the circular flow from sources other than households
injections
3 of 10
the total demand from all sources in the economy
aggregate demand
4 of 10
(C) - house hold spending
consumption
5 of 10
(I) - spending on capital goods to increase future productive capacity
investment
6 of 10
(X-M) - exports take away imports
the balance of trade
7 of 10
(G)
government spending
8 of 10
product assets, acquired by investment, which are expected to make a contribution to future profit
capital goods
9 of 10
total amount of output from all activities
aggregate supply
10 of 10

Other cards in this set

Card 2

Front

ways in which income escapes the circular flow between households and firms

Back

leakages

Card 3

Front

Additions to the circular flow from sources other than households

Back

Preview of the front of card 3

Card 4

Front

the total demand from all sources in the economy

Back

Preview of the front of card 4

Card 5

Front

(C) - house hold spending

Back

Preview of the front of card 5
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