National Income
Need to KnowAt the end of this section the student should be able to:
• Define National Income • Define Gross Domestic Product • Outline the uses of National Income Statistics • Outline the limitations of national income statistics • Explain what is meant by the black economy • Explain a leakage, in terms of national income • Explain an injection, in terms of national income • Illustrate and explain the Circular Flow of Income and its effect on aggregate demand • Explain Y=C+I+G+X-M • Briefly outline the three methods used to calculate National Income • Explain the term Net Factor Income with rest of the world • Define the term Gross National Product • Explain the term Factor Cost • Explain the term subsidy • Explain the term Current Market Prices • Explain the term Depreciation • Explain the relationship between Gross Domestic product at Factor Cost and Net National Income/Net National Product • Define the Multiplier • Define & calculate MPC • Define & calculate MPS • Define & calculate MPC • Define & calculate MPT • Define & calculate MPM • Given data, calculate the Multiplier • Show how much of an affect an initial injection has on National Income given a multiplier and a monetary injection |
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