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Measurement of Economic Performance Videos 6 videos
AP Macroeconomics 1.1 Measurement of Economic Performance. How do we measure net Domestic Product?
AP Macroeconomics 1.6 Measurement of Economic Performance. Which is true of the basic two sector economy in the circular flow of income model?
AP Macroeconomics 1.10 Measurement of Economic Performance. Greece has a sudden and surprising number of people who emigrate to Turkey. What is the...
AP Macroeconomics 1.8 Measurement of Economic Performance 192 Views
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Description:
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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