economics help (1 Viewer)

[raven2000]

hi!
i was wondering if any of you can share your notes on the economics preliminary Topic 1, B- the operation of an economy, especially the curcular flow of income ( 5 sector model , equilibrium, etc).
Thanks in advance
I was away on the day and I missed out on the notes, and i dont know anyone in my class yet.

 

[z600]

S+T+M=I+G+X (She Touches Me = I Get eXicted) This is when the economy is in equilibrium, which never occurs.

If S+T+M>I+G+X (Leakage is greater than injection)-Economy in recession
If S+T+M<I+G+X (injection is greater than leakage)-Economic growth

T>G (surplus)
G>T (deficit)
Same thing happens with exports and imports, except they are call trade surplus and trade deficit.

The rest is self-explanatory, maybe you could ask your teacher for some notes or friend?

 

[Faytle]

S+T+M=I+G+X (She Touches Me = I Get eXicted)

LOL!
Thanks to you, that'll probably stick in my head during exam time

And adding on to what z600 said, when an economy is in disequilibrium (inequality between total leakages and total injections), equilibrium can be restored, but at different levels of income.

eg. when leakages > injections: total leakages from the economy will also fall due to consumers having less income to save, spend on imports or pay taxes. So then equilibrium is restored, but at a lower level of income.
(Opposite case for injections > leakages)

Hope that helps a bit!

 

[cs01001]

S+T+M=I+G+X (She Touches Me = I Get eXicted) This is when the economy is in equilibrium, which never occurs.

LOL!! That will stick in my head forever, Thannks z600!!

 

[raven2000]

Thanks alot everyone!
phew i feel much better now that i got some notes on this topic