Students will be able to
- understand the flow of money between households and between firms,
- distinguish between the definitions and components of GNI and GDP and understand GNI and GDP as measures of national income,
- understand the difference between nominal (money) GNI/GDP and real GNI/GDP,
- understand the following three ways to measure GNI/GDP: output approach (production approach), income approach, and expenditure approach,
- understand the relationship between national income, saving, consumption, and investment,
- understand how per capita GNI/GDP is computed.