-The study of economy-wide phenomena, including inflation, unemployment, and economic
-GDP (Gross Domestic Product)
-Measures the total income of a nation.
-Measures total income and total expenditure of the people because the two values are the
-Buyer and Seller.
Circular Flow Diagram
-Firms pay the households for their work.
-The households pay the firms for the goods created by the workers.
-This shows that when one person is a buyer the other is a seller.
-Market value of all final goods and services (G&S)
-Excludes illegally sold items
-Items used to make other items are not counted because they are not FINAL goods
-Only the first sale of an item is counted.
-A resale of an