AD, AS and National Income

What are the two major economic agents?

• government and firms

• households and banks

• government and banks

• households and firms

In a _____ economy, we have no ____, ______ trade, government

• closed,

  banks,

  fair

• 
  open,

  banks,

  fair

• 
  

  closed,

  homes,

  fair

• 
  

  closed,

  banks,

  unfair

Investments

• Leakages

• Injections

Government Expenditure

• Leakages

• Injections

Exports

• Leakages

• Injections

Savings

• Leakages

• Injections

Tax

• Leakages

• Injections

Imports

• Leakages

• Injections

Types of National Income

• Capital - return

• Enterprise - profit

• Land - rent

• Labour - wages

• Wealth - finance

Aggregate Demand

• It is the total level of real planned expenditure on goods and services in a country in.a given time period

• It is the total amount of goods and services that all firms in the economy are willing to supply at a given price level in an economy in a year