Macroeconomics Terminology

national income

national income

the income earned by the factors of production of an economy, equal to wages plus interest, plus rents, plus profits

national income accounting

the services provided by a statistical entity in every country that measure the economy’s national income and output as well as other economic activity

leakages

income not spent on domestic goods and services. It includes savings, taxes and import expenditure

injections

within the circular flow model these refer to spending on domestic output that does not originate from households and thus includes investment spending by firms, government expenditures and exports