Logged out
Access All our Essays in an Instant
Swap your work for FREE access, or pay £4.99 for instant access
Explain what ismeant by the full employment level of National Income and Equilibrium level ofNational Income. Why might these levels of income be different?
Member rating: No Rating | Words: | Submitted: Fri Mar 04 2005
Page Preview
On the left is an image preview of every page of this document, and below are the first 150 words with formatting removed:
Explain what is meant by the full employment level of National Income and Equilibrium level of National Income. Why might these levels of income be different? National Income is the level of total output, expenditure or income of an economy over a period of time. The main measure of NY used around the world today is Gross Domestic Product, or GDP. This is a measure of all domestic production, that is, production not including trade, which takes into account the value of indirect taxes such as GST. Full employment level of National Income means the level of total output attained when unemployment is at a socially acceptable level. In most cases this is around 5%, however it does tend to vary. If a government sets a target unemployment level and this is reached, the economy is said to be operating at full employment (Nf). Full employment also includes something called the...
To see the full version of this document, and 145,348 others
