National Income and Macroeconomic Equilibrium (Edexcel A-Level Economics A): Flashcards

Shows relationships between income, expenditure, and output

Households and firms

Income method, expenditure method, output method

Savings (S), taxation (T), imports (M)

Investment (I), government spending (G), exports (X)

Income is a flow; wealth is a stock

Planned expenditure equals planned output

Falling output combined with rising prices

$\text{mpw} = \text{mps} + \text{mpm} + \text{mpt}$

$\frac{1}{\text{mpw}}$