Ha Lu Beo Essay

480 Words2 Pages
I – Key-terms : 1. Business sector: the countless individual firms which undertake the production of G&S Circular flow of income: a schematic representation of the aggregate economy linking the flows of payments and income between the principal sectors in the economy The simple circular flow model: is a simple way to visually show the economic transactions that occur between household sector and business sector in the economy. Macro equilibrium: an economic situation where is no tendency for change; in D&S analysis, E exists when D is equal to S. In macroeconomics, where aggregate D (total expenditure) equals aggregate S. Net exports: exports less imports Savings: that part of income which I not spent Government sector: all government authorities at national, state and local level. 10. Financial sector: firms which specialize in financial services. Households and business saving part of their income with financial institutions, which, in turn, may lend out some of these saving to business for purchasing machinery and equipment, or not financing investment. Households may also borrow money. 11. Gross Domestic Product: the market value of all final G&S produced in the economy during a year 12. Nominal GDP: GDP at current prices Real GDP: GDP that is inflated or deflated for price changes or GDP at constant prices 14. Aggregate Demand: the total demand for G&S in the economy Government purchases (G): purchases of G&S by all levels of government Personal Consumption Expenditure (C): aggregate consumer spending. Expenditure on Australia- produced overseas Private Investment Expenditure: expenditure by the private sector on capital G&S 18. Economic growth: a sustained increase, overtime, in the real value of the production of G&S produced c)injections are

More about Ha Lu Beo Essay

Open Document