MACROECONOMICS

MACROECONOMICS

GOVERNMENT
INFLATION UNEMPLOYED
BUDGET

BALANCED
TAX
PAYMENT
THE NATIONAL INCOME ACCOUNT

Figure 9.1 Circular flows of money and goods in

a simple economy
 GROSS NATIONAL PRODUCT for 1989
(billion)
Using the expendicture Using the Income
method method
C Final sales to consumers 3.471,1 Payments to employes 3.496,5
and managers
I Final sales to business plus 773,4 Net interest ( interest 460,8
inventory changes paid minus interest
earned)
G Final sales to government 1.036,6 Depresiation 552,3
NE Final sales to -47,1 Business taxes 415,2
foreigners(exports-minus
imports)
Net rental income 7,9
Profit 301,3
Total GNP 5.234,0 Total GNP 5.234,0
OTHER NATIONAL INCOMES CONCEPTS
 TOOLS OF MACROECONOMICS- AGGREGATE DEMAND AND
AGGREGATE SUPPLY

•
THE AGGREGATE SUPPLY CURVE
EQUILIBRIUM OUTPUT
SHIFTS IN THE AGGREGATE DEMAND
SHIFTS IN AGGREGATE SUPPLY