macroeconimics What is macroeconomics? You may have already studied microeconomics, which looks at preparation, essential and prices for individual goods. Macroeconomics looks at the bigger picture and involves the study of the auction pitch as a whole. National income Let us erect about by looking at a open model - a two sector economy made up of ho hireholds (consumers) and firms (producers) -and use this to wax the idea of national income. To start with we will send packing the jounce of government policy and overseas sectors. Households ultimately make the factors of production, e.g.
, labour, materials and capital, and supply these factors to firms who use them to produce goods and services. In return households crystallise rewards for provision the firms with the factors of production e.g., wages and interest on capital. These rewards are in turn used to buy the goods that the firms have produced. This forge is cognize as a circular flow- see carriage 1. Figure 1: Simple circ...If you want to get a adept essay, order it on our website:
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