Refrerance Material

Refrerance Material - These problems are called leakages because this is money leaving the system These could cause cut backs Savings go back into

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Refrerance Material. http://www.statehealthfacts.kff.org/comparemaptable.jsp? Unemployment Rate (Seasonally Adjusted), 2007-2008 United States Percent October 2007 4.8% October 2008 6.5% Table 1.1 http://www.photius.com/rankings/economy/labor_force_2008_1.html Labor force 2008 Country Ranks Ran k Country Size of Work Force 1 World 3,001,000,000 2 China 803,300,000 3 India 516,400,000 4 European Union 222,400,000 5 United States 153,100,000 Table 1.2
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Tuesday September 23, 2008 Product Market Money in system: 13 Trillion Expenditures Goods and service Nation House Holds Taxes (-1 Trillion) (Government spending) Taxes National Business Land, Labor, capital and entre Wages, Salaries, interest, Rent Imports (-1 Trillion) Exports Savings (-1 Trillion) Invest (new equipment, inventory buildup) Factor Market Problems –people don’t just by goods and services so money goes to savings, imports and taxes.
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Unformatted text preview: These problems are called leakages because this is money leaving the system. These could cause cut backs. Savings go back into the system for money to lend by brokers. Taxes go back to National House Holds and National Business currently going to war, pay for healthcare, military, send aid, and welfare. Our national debt is funded by foreign sources. Everything stays in Macro Equilibrium as long as Injections = Leakages we are ok as long as we are offset equally example: Import ≠ Exports Import > Exports Saving = Investment by Companies Saving < Investment by Companies Taxes = Government Spending Injection > Leakages a possibility of Inflation Injection < Leakages a possibility of Resection Measurement Problems 1) Non –Market Activity (home labor) 2) Unreported income (underground economy) 3) International Activity 4) Environmental factors...
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This note was uploaded on 09/09/2011 for the course ECON 104 taught by Professor Dolenc during the Fall '08 term at UMass (Amherst).

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Refrerance Material - These problems are called leakages because this is money leaving the system These could cause cut backs Savings go back into

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