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leakages or injections: Imports
Leakage
leakages or injections: Investment
Injection
What are the four main factors of Production
natural resources or land, labour, capital, enterprise or entrepreneurial
What is the business cycle
A graphical interpretation of recurring fluctuations in the level of economic activity over time
What are the sectors within the private circular flow model
Individuals/households, Firms/businesses and financial institutions
What is the group applied to the private sector to create a public sector circular flow/ domestic economy
The government sector
What is the budget and economic outcome of a country is C=200 I=400 G=300 X=500 S=100 T=200 M=250
Govt Deficit and expansion in the economy
Based on the circular flow model, explain what the government would do if it believed that economic activity was too high
Increase taxation
Apart from receipts for exports, identify what other money flows into Australia would also be regarded as injections.
Financial flows into the economy/ foreign investment
Identify what is meant by equilibrium.
Things being equal
MPS + MPC =?
1
How do we calculate MPC
Change in C/Change in Y
What are 3 things that determine if someone will spend or save?
Income levels and future expectations, Cultural factors, Economic Confidence and future expectation, Life stage and age distribution, credit OR Govt policies
