2.2 How the macroeconomy
works: the circular flow of
income,
aggregate demand/aggregate
supply analysis and related
concepts
2.2.1 The circular flow of income
National income is the total value of the goods and services a country produces. It is
the output in one year. Can me measured in GDP, GNI and GNP.
2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and
1
related concepts
, Income = Output = Expenditure
2.2.2 Aggregate demand and aggregate supply
analysis
Changes in price level are represented by movements along the AD/AS curves.
2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and
2
related concepts
works: the circular flow of
income,
aggregate demand/aggregate
supply analysis and related
concepts
2.2.1 The circular flow of income
National income is the total value of the goods and services a country produces. It is
the output in one year. Can me measured in GDP, GNI and GNP.
2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and
1
related concepts
, Income = Output = Expenditure
2.2.2 Aggregate demand and aggregate supply
analysis
Changes in price level are represented by movements along the AD/AS curves.
2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and
2
related concepts
