What's it: Economic actors refer to the participants in economic activities in an economy. They use productive resources and interact with each other with their respective motives and compensation, involving the flow of goods and
Economic Activities
Gross National Income: Meaning, Formula, Difference with GDP and GNP
What's it: Gross national income (GNI) is the total aggregate income earned by citizens, regardless of where they make it. For example, for the Indonesia GNI, it means income earned by Indonesians abroad and those who live in Indonesia
Circular Flow of Income: Types and Descriptions
What's it: A circular flow of income model shows you the economy's movements of spending and income. Brief overview: Output flows from businesses to households in the goods market. While money flows from households to businesses.
Aggregate Output: Meaning, Determinants, Effects on Economy
Aggregate output is the total value of goods and services produced in the economy during a certain period, usually one year. Economists typically use the gross domestic product (GDP) as its measure. The statistical bureau calculates it
Aggregate Expenditure: Meaning, Components, Formula
Aggregate expenditure is the amount of spending on goods and services in an economy. It covers household consumption, investment expenditure, government spending, and purchases by foreigners. Usually, consumption covers the majority of
Aggregate Income: Meaning, Formula, How It is Measured
Aggregate income refers to the value of all income that suppliers of production factors receives over a specified period. The value will be equal to the value of aggregate output because it ultimately flows to the owner of the factors of
Economic activities
Economic activities refer to various activities to meet the needs and wants, and they involve money. Those activities include production, distribution, and trade, and consumption in the economy over a specified period. In aggregate, you can
Accelerator Effect: Meaning, How It Works
An accelerator effect is an effect in the economy where small changes in the gross domestic product (GDP) result in changes in more substantial aggregate investment spending. That is the reason why we often see a surge in capital spending
Gross Domestic Product: Three Approaches, Importance, How to Calculate
Gross Domestic Product (GDP) is the total market value of all final goods and services produced in the domestic economy during a certain period. Alternatively, we can also define GDP as the total expenditure or total income in the