IndietroSavings Equal Investment definitions
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1/15IndietroSkip to main contentIndietroNational Savings
Total income left after subtracting consumption and government purchases; combines household and government savings. Private Savings
Household income remaining after paying for consumption and taxes; represents funds available for investment. Public Savings
Government tax revenue left after government spending; can be positive (surplus) or negative (deficit). Investment
Resources allocated by firms to increase future output, such as factories or machinery, not financial assets. Closed Economy
Economic system with no trade with other countries; net exports are zero, simplifying national income calculations. Open Economy
Economic system that trades with other countries, including exports and imports in national income accounting. Net Exports
Difference between a country's exports and imports; positive when exports exceed imports, negative otherwise. Net Capital Inflow
Funds borrowed from abroad to finance domestic investment when imports exceed exports. Budget Surplus
Situation where government tax revenue exceeds its spending, resulting in positive public savings. Budget Deficit
Condition where government spending surpasses tax revenue, leading to negative public savings. Expenditure Approach
Method for calculating GDP by summing consumption, investment, government purchases, and net exports. Gross Domestic Product
Total market value of all final goods and services produced within a country during a specific period. Consumption
Spending by households on goods and services, representing a major component of GDP. Government Purchases
Expenditures by the government on goods and services, excluding transfer payments. Tax Revenue
Funds collected by the government from households and firms, used to finance public spending.
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