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AP Macroeconomics Videos 6 videos

AP Macroeconomics 1.1 Measurement of Economic Performance
64 Views

AP Macroeconomics 1.1 Measurement of Economic Performance. How do we measure net Domestic Product?

AP Macroeconomics 1.2 Measurement of Economic Performance
20 Views

AP Macroeconomics 1.2 Measurement of Economic Performance. What is inflation?

AP Macroeconomics 1.6 Measurement of Economic Performance
30 Views

AP Macroeconomics 1.6 Measurement of Economic Performance. Which is true of the basic two sector economy in the circular flow of income model?

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AP Macroeconomics 1.8 Measurement of Economic Performance 192 Views


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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

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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