Macroeconomics focuses on how to measure the national income,the Scope is divided into three
Economic growth;it shows how fast it grows. Unemployment;it indicates that no enough income to go around and must people will be unemployed. Inflation;it makes life difficult.
There are major macroeconomics issues, the government policy-choosing between the macroeconomics theory. In choosing priorities the circular flow of income comes first.
THEORY----DATA
Richard stones used his work to say that some things are missing: investments-income-tax returns. also looking at the injections we have.
Investments-companies investments-railway lines
Government expenditure-peoples pension,schooling etc
Export expenditure-moved to other countries.
The companies and households are the factors
BANK-net saving-financial GOVERNMENT-net taxes-investments ABROAD-import expenditure-export expenditure.
There are relationships between injections and withdrawals
. The links between them
.Planned injections may not equal planned withdrawals.
Etc
There 3ways of measuring national income
-The product method-how much we produce:land labour and capital
-The income method-how much we earn
Expenditure method-retail shops-GNY NNY
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