Is the value of the aggregate output of the different sectors during a certain time period.

Is for purpose of measurement and analysis , national income can be viewed as an aggregate of various component flows.

The most widely used measure of economic performance throughout the world.

Is the total market or money value of all final goods and services by a nations residence no matter where they are located.

Demonstrates how many moves through society.

To calculating the gdp takes into account the sum of all final goods and services purchased in an economy over a set period of time.

Formula of expenditure approach

Components of the expenditures:

Are expenditures by foreigners for philippine goods produced domestically.

Are the dollar amount of philippines'

purchase of japanese and american products.

Is a real estate valuation method that uses the income, the property generates to estimate fair value.

Is an economic productivity metric that measures the contribution of a corporate subsidiary , company , or municipality to an economy , producer , sector or origin.

Comprises the total spending made by households on good and services.

The purchase of goods that will be used in the future to produce more goods and services

Spending by government entities , whether local or national governments , on goods and services such as salaries of government workers and spending on public works.

Equal the purchases or domestically produced goods by foreigners (export) minus domestic purchases of foreign goods (import).

Is the value of all final goods and services produced during a given time period based on the prices existing in a selected based here.

The value of all final goods and services based on the prices existing during the time period of production.

Measures the changes and prices for all goods and services produced in an economy.

Is the amount of money collectively received by the inhabitants of a country.

Is the amount of money that an individual or household has to spend or save after income taxes have been deducted.

Is the earnings of individuals or the nation after adjusting to the extent of inflation and is sometimes called real wage when referring to an individual's income.

Relationship between desired consumption of all households to the several factors that determine it.

Is the proportion of national or disposable income households spend on final goods or services.

The process of setting aside a portion of current income for future use

Is the process of generating income through the circular flow exchanged between the households and the firms.

Marginal propensity to consume is expressed as a coefficient.

Marginal propensity to save is the saving factor.

Determinants of savings:

Factors of consumption:

Determinants of savings:

Determinants of investment demand:

Can affect expenditures and savings.

It may change the level of savings.

Can erode savings as it gets a slice of income available four spending

Interest rate on savings accounts may only have minimal effect on the level of savings of households and businesses considering that the desire to save is basically influenced by motives other than earning interest.

Is the particular amount of interest which a household or business is required to pay to a lender for borrowing a particular sum of money to finance spending on assumption and investment.

States that the level of investment is a function of desired changes in output.

Can create demand for products including capital goods and usher the acceleration process between income and investment.

Is the basic reason why a business invest and , therefore , profit tense and fluence business investments in the long run.

A businessman generally invests because he expects a certain level of profit given certain influence of the business environment.

The total amount of expenditure on domestic good and services.

Is the total quantity of all goods and services produced in an economy at all possible price levels at a given time.

Bond prices and interest rates move in opposite directions , so when interest rates fall , the value of fixed income investments rises , and when interest rates go up , bond prices fall in value.

Means the ability of a country's produces to complete successfully and world markets and with import in its own domestic market.

He proposed that aggregate real consumption is a function of the aggregate level of income.

He proposed the central idea of the permanent-income hypothesis in 1957.

Is comprised of things such as their long-term earnings from employment, retirement pensions and income derived from the position of capital assets.

Comprises a short-term temporary overtime payments , bonuses.

It is an ideal objective because at this level of income , there is no available and useful resource of the economy that is wasted.

Means the full utilization of all available labor and capital resources so that the economy is able to produce at the limits of its potential gross national product.

It is the fluctuation in the level of economic activity alternating between periods of depression and boom conditions.

Four phases of the business cycle:

A cycle that consists of expansions occurring at about the same time in many economic activities , followed by similarly general contractions.

One prominent factor is the volatility of fixed investments and inventory investment and expenditures.