National Income Determination Assignment Example | Topics and Well Written Essays - 250 words

National Income Determination - Assignment Example One economist argued that confidence in economic agents could at times be considered as a social capital (Godley, 2009). Therefore, an increase in confidence of economic agents should always affect the macroeconomic variables positively. Consumer confidence – a higher confidence by the consumers will always facilitate them to spend more. Interest rates – it always influence cost of borrowing and mortgage interest payments. Higher interest rates will automatically increase cost of spending on mortgages. Availability of market – the increase in population constantly increases the demand for products that are specifically supporting the modern technology. Investors therefore identify such opportunities and utilize them effectively. Consumer and investor trend reports will automatically affect my spending. This is because i will spend focusing on factors that may hinder my satisfaction as a consumer. I will therefore appropriately plan with the amount of money I have at hand. GDP refers to the measure of total value of all goods produced and services provided in a country during a specific time, which is always one year. For an item to be included in the GDP, it has to be something that is produced within the borders of a country, should not be used to produce other goods and it should be legal. The exclusion therefore does not make GDP less