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AP Macroeconomics 1.8 Measurement of Economic Performance. Which equation represents how the circular flow model depicts income (Y)?
AP Macroeconomics 1.4 Measurement of Economic Performance. Which is not a measure of economic performance?
AP Macroeconomics 1.1 Measurement of Economic Performance. How do we measure net Domestic Product?
AP Macroeconomics 1.8 Measurement of Economic Performance 192 Views
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AP Macroeconomics 1.8 Measurement of Economic Performance. Which equation represents how the circular flow model depicts income (Y)?
Transcript
- 00:00
Thank you and here's your shmoop douceur brought to you
- 00:05
by the circle of life which is much more of
- 00:09
an upper than the triangle of death Which equation represents
- 00:12
how the circular flow model depicts income Why right here
- 00:17
Potential answers All right well the circular flow of income
Full Transcript
- 00:24
what does that mean How can income be circular Well
- 00:27
when it works like this yeah able buys a hot
- 00:30
dog from betty who takes that money and buys a
- 00:33
banner out on google from candy who takes her google
- 00:36
commission money and spends it on a trip to manhattan
- 00:38
where she ends up getting lost and driving in circles
- 00:41
and then buys a hot dog from abel Okay so
- 00:46
navigation issues aside the money in this scenario flows in
- 00:49
a kind of circle circle ish anyway and eventually yeah
- 00:52
the money flows back to able from hungry manhattan passersby
- 00:55
who buy more hot dives Well the idea of circular
- 00:58
flow is that it captures the concept of spending expenditures
- 01:04
getting the hint here All the rest is just alphabet
- 01:07
soup and curveballs meant to confuse you But the answer
- 01:10
is b it's just the sum total of all goods
- 01:14
and services we produce otherwise known as gdp One person
- 01:18
spend is another person's income Remember that you know to 00:01:22.529 --> [endTime] say that wait maybe that was bernie madoff
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