The         of income is a diagrammatic illustration of a simple economy diagram.

flow  AD / AS  national  circular 

Both     and businesses are inter-dependent.  Businesses require    to provide them with    , labour,   and entrepreneurship.  They also   the goods and services that businesses produce.

capital  consume  households  consumers  land  rent  households  wages 

Examples of     include taxes, savings and     from overseas.

 imports  exports  injections  withdrawals 

Examples of into the flow include spending, and exports.

circular  government  businesses  households  injections  investment 

Business sell goods and services in the market.

product  retail  resource 

Businesses purchase goods and services in the     market.

product  retail  resource 

GDP can be calculated by the  method.

income, expenditure and production  income, expenditure and output  income, sales and production 

  equals the total     of a nation or the total income of a country.

output  income  GNI  GDP 

  is equal to gross domestic product, plus receipts from abroad of wages and salaries and of property income, plus net taxes and subsidies receivable from abroad.

 net  total  GNI  GDP 

      / GNI: GDP or GNI adjusted for the effects of     i.e. the rise in general prices.

inflation  GDP  GNI  wages levels  real  taxes 

GDP / GNI       : GDP or GNI divided by the number of     in a nation.  This is a more accurate measure of        than the previous measurements because it considers not only the size of a nation's    but the number of people that it is shared between.

per  standards  living  people  households  real  income  capita 

The           measures how long it takes for the average worker to save sufficient money to purchase a         in their own country.

  index  big  mac  answer  big  production costs  mac  retail   price  wages 

Governments collect    statistics for a variety of reasons.  Some of these include that national income statistics are effectively a of the success of an economy, a prediction of     trends and also used as the basis of long term   .

income  record  planning  economic  output  sales  trends  national  future 

    is calculated by adding up the sum of all final goods and services produced in an economy, over a period of time at a given average price.

Aggregate  demand  answer  National  Derived 

     measures the total supply of all goods and services produced in a national economy, over a period of time at a given average price.

  Aggregate  supply  National  production  output 

A is a period when the level of real GDP falls over , 3 month periods in a row.

depression  financial crisis  recession  three  two  six

The missing labels from the diagram are 1 –    , 2 –    , 3 –     and 4 –    .

decline  growth  stability  trough  recession  peak