3. National Income
• refers to the value of income from the sales of
goods and services in a country.
• It is the aggregation of the incomes received
by resource owners, specifically wage/salary,
interest, rent and profits, including whatever
income is earned from abroad.
4. Investments
• is an expenditure on real capital goods
which refer to physical goods, but does
not include investments of commercial
banks/purchases of existing capital goods
like a seven year old school building.
5. Savings
• refer to that part of income not spent on
consumption.
Consumption
• refers to the total expenditure in an economy
on goods and services which are used up
within a specified, short period of time.
