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What else can I help you with?
Consequences of planned savings being greater than planned investment on income?
the economy will contract, total income and output decreases and may be the begining of a recession.
Three equivalent ways to measure GDP are?
1. Output: i.e. the total value of the output of goods and services produced in the UK.2. Spending: i.e. the total amount of expenditure taking place in the economy.3. Incomes: i.e. the total income generated through production of goods and services
Explain fully the relationship between the definition of macroeconomics an output?
Macro Economics is not considering only the out put without having any input. Macroeconomics is that branch of Economics which study the overall economic system or entire economy or aggregate variables. Such as total or national income(for Afghanistan 13 bn $), total employment(15 mn), total or aggregate saving, aggregate supply and demand and general price(6%). •Macroeconomics deals with aggregates of variables or quantities(total) and not with individual quantities, deals with national income and not with individual income, deals with general price level and not with individual prices, deals with national output and not with individual output'.
What is total domestic income?
A total domestic income, or Gross Domestic Income (GDI), is the total income received by all sectors of an economy within a nation which includes the sum of all profits and wages minus liabilities/subsidies.
Why is the circular flow model important?
Total income in the economy must always equal total spending. :)
How do we calculate IS equilibrium of national income?
IS equilibrium in national income is achieved when the total output (income) in an economy equals total spending (expenditure). This is represented by the IS curve, which shows the relationship between interest rates and income where investment equals saving. To calculate it, we set the aggregate demand (consumption + investment + government spending + net exports) equal to the aggregate supply (national income) and solve for the income level. At the equilibrium point, any changes in interest rates will shift the IS curve, resulting in a new equilibrium income level.
How do you calculate GNP by using income approach?
MY tercher told me ,that has 3 method to calculate. 1.income method -total all money earn by factors of production ( wage,rent ,interest,profit) 2.output method - total value of all output produced in the economy(value added for manufactured goods) 3.expenditure method (total of capital asserts) all money on goods and servise +adiction to stock+(import spending-export spending)+(subsidies-taxes)the earned income of workers added together then subtracted from investors profit.
What is equilibrium national income?
Equilibrium national income refers to the level of income in an economy where aggregate demand equals aggregate supply, meaning that total production matches total spending. At this point, there are no inherent forces causing the income level to change, as all goods produced are purchased. It reflects a balance between consumption, investment, government spending, and net exports. Any deviation from this equilibrium can lead to either surpluses or shortages, prompting adjustments in output and income levels.
What is the aggregate expenditure function in terms of income?
the function that represents total spending in an economy at a given level of real disposable income.
Why must an economy's income be equal to it's expenditure?
An economy's income must be equal to it's expenditure because every transaction has a buyer and a seller. It is also because every dollar of spending by some buyer is a dollar of income for some seller. Gross domestic product (GDP) measures an economy's total expenditure on newly produced goods and services and the total income earned from the production of these goods and services.
What is net domestic product at market price?
Net National Product is the sum of total final goods produced by an economy in certain time period that is one year ,minus the total capital money incurred for the production of total final goods in an economy for the time period of one year.
What are the strengths of GNP in your economy?
It basically shows how strong an economy is on average level, yet it doesn't consider all income classes but a total.
