01 - Demand

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Published on March 16, 2016

Author: BusinessIB

Source: authorstream.com

Slide1: www.IBDeconomics.com IB Economics T he IB Diploma Economics course delivered IN STYLE, ONLINE. © Slide2: Competitive Markets: Demand and Supply www.IBDeconomics.com © Demand 1.1 Slide3: www.IBDeconomics.com Law of demand © Slide4: www.IBDeconomics.com Circular flow of income © Leakages Injections Saving Investment Taxes Gov. spending Import payments Export receipts Withdrawals are increases in savings, taxes or imports so reducing the circular flow of income and leading to a multiplied contraction of production (output). Injections  into the  circular flow  are additions to investment, government spending or exports so boosting the  circular flow  of income leading to a multiplied expansion of output. Slide5: www.IBDeconomics.com Measuring economic activity © Expenditure approach Income approach Output approach Adds up all spending to buy final (finished) goods and services produced within a country, in a year. Adds up all of the income earned by each factor of production that produces goods and services within a country, in a year. The value of all final (finished) goods and services are calculated for a country, in a year. Slide6: www.IBDeconomics.com Expenditure approach © Consumption spending Investment spending Government spending Net exports C I G X-M Slide7: www.IBDeconomics.com Expenditure approach © Consumption spending Investment spending Government spending Net exports C I G X-M Slide8: www.IBDeconomics.com Simple circular flow of income © Simple circular flow of income

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