Macro Economics Definitions .2 3.0 / 5 based on 1 rating ? EconomicsHow the macroeconomy worksASAQA Created by: SophCreated on: 12-04-16 19:11 National income This is the flow of new output produced by the economy in a particular period 1 of 13 Wealth The stock of assets which have value at a point in time 2 of 13 National income/product/output The flow of new output produced by the economy in a particular period 3 of 13 Consumption The total planned spending by households on consumer goods and services produced within the economy 4 of 13 Closed economy An economy with no international trade 5 of 13 Saving Income which is not spent 6 of 13 Withdrawal This is a leakage of spending power out of the circular flow of income into saving, taxation or imports 7 of 13 Injection Spending entering the circular flow of income as a result of investment, government spending and exports 8 of 13 Macroeconomic equilibrium This is when AD=AS 9 of 13 Economic shock This is an unexpected event hitting the economy which could be (un)favourable 10 of 13 Accelerator A change in the rate of growth of national income leading to a change in the level of investment (A>G>I) 11 of 13 Multiplier Any change in spending resulting in a larger change in national income 12 of 13 Marginal propensity to consume (MPC) This is the fraction of an increase in disposable income that people plan to spend on consumer goods 13 of 13
Comments
No comments have yet been made