Trade balance, services balance, and interest payments {current account balance} measures exports compared to imports.
Personal consumption plus personal savings {disposable income}| is an economy measure.
People can try to keep money rather than spend {effective demand}, so demand is less than optimum. People feel that their money is not enough for future needs. Printing more money can increase effective demand because money seems plentiful.
gross investment + government purchases + personal consumption + net exports {gross national product}| (GNP) is an economy measure.
In economies, people receive different incomes {income, economy} depending on skills, education, experience, responsibilities, and rank.
inequality measures
Governments measure income inequality {Lorenz curve} {Gisi coefficient}.
policies
Government policies can increase income equalization.
School loans and scholarships {education grant} improve worker incomes later.
Unemployment payments, disability payments, illness payments, and old-age payments {transfer payment, income} provide money directly to people unable to work. Anti-poverty programs, retraining grants and programs, aid to dependents, and aid to handicapped people {welfare, income} provide money indirectly to people unable to work.
Progressive taxation takes more money from higher-income people and less from poorer people. Taxes on wealth take money from rich people.
Laws against discrimination help people have equal opportunity to get income.
Savings bonds allow people to receive income later.
Wages and salaries {labor value}, set in labor market, determines income. Money value, set in money market, also determines people's income.
Income {imputed income} can be real but not monetary: farm production consumed by farm family, value of rent not paid to owner for house use, and housewife-work value.
Governments have debt {national debt}|, which they typically owe to citizens. Taxes pay this debt. Debt payments go back to people that pay taxes {tax friction}.
Total country output income {national income}| does not equal national product, because some production remains unsold, in inventory.
Countries can produce goods and services {national product}|.
Gross national product minus capital consumption {net national product} is an economy measure.
Personal consumption + personal taxes + personal savings {personal income}| is an economy measure.
Economies have personal consumption schedules, business investment schedules, government expenditure schedules, and net export schedules {planned expenditures}. Saving schedule and investment schedule must be equal for optimum GNP, because then demand and supply are equal.
6-Economics-Macroeconomics-Measurement
Outline of Knowledge Database Home Page
Description of Outline of Knowledge Database
Date Modified: 2022.0225