- It refers to the movement of capital that is under foreign ownership and foreign control of production facilities.

- It is the sum of all expenditures undertaken in the economy by the factors during a specific time period. 

- Economic events in one situation or nation that occur as a result of something else in a seemingly unrelated context.

- Investment refers to the expenditure on capital goods which will contribute to the production of more finished goods for consumption. A rise in investment, in short run or long run will affect the macroeconomic performance in many aspects. A significant contribution towards the growth of national income and employment. 

- Government expenditure is used to improve infrastructure for the country to raise the efficiency of the industries and provide a higher level of standard of living. A kind of injection to improve liquidity of the financial market in times of insolvency. Able to indirectly boost consumption through the increase in the disposable income that will provide a higher level of purchasing income. Act as a remedy solution to solve deflationary condition.

- A measurement for the standard of living 

- Savings provides the capital for investment and source of fund for the government for public expenditure (CPF). Higher level of savings will also provide more sovereign fund for the economy to generate more wealth for the country. This will enable the economy to have more funds for public expenditure to raise the efficiency of the economy and the standard of living. Besides this, the fund can also provide more funding for the economy to counter economy crisis. Saving helps in the social planning for retirement and family development → promote social stability.

- In the reverse multiplier process, the initial reduction in the aggregate expenditure contracts the circular flow of income and then, reducing the income of the factor earners which will further contract the circular flow of income as consumption activities reduces. As lesser consumption activities are made, the circular flow of income will contribute to contract at the respective level of economic activities until the withdrawal effects is equal to the initial reduction in injection. Consequently, the national income will decrease by several folds, depending on the value of the multiplier which is determined by the sum of MPW (Marginal Propensity to Withdraw = MPS + MPT + MPM).

- The amount of income earned by the factor services provided which will allow the individuals to make purchases that will further expand the circular flow of income. 

- It refers to the different ways on how the level of national income is obtained, which can be based on the output approach, income approach and expenditure approach. 

- It is the ratio of the change in income to the change in autonomous expenditure that brings about the change in income. It determines the amount of change in national income as a result of a change in aggregate expenditure. 

- The amount of aggregate expenditure to be reduced to restore national income to the full employment level. 

- The amount of aggregate expenditure to be increased to restore national income to the full employment level.

- In the multiplier process, the initial increase in the aggregate expenditure expands the circular flow of income and then increasing the income of the factor earners which will further expand the circular flow of income with new consumption activities. As long as more consumption activities are take place, the circular flow of income will continue to expand at the respective level of economic activities until the withdrawal effect is equal to the initial injections which will cease the expansion of the circular flow of income. Consequently, the national income will increase by several folds, depending on the value of the multiplier which is determined by the sum of the MPW (Marginal Propensity to withdraw - MPS + MPT +MPM).

- It refers to the market equilibrium level of national income is attained when the economy is under stable market condition whereby the market output level is equal to the aggregate market demand. At this level of market condition, there is no tendency of change in the level of national income unless there is a change in the level of economic activities.

- It refers to the flow autonomous expenditure which government puts into the economy that will expand the circular flow and thus, raises the level of national income Withdrawal It refers the leakages that will flow out of the circular flow of income that will reduce the expansion of the circular flow of income.

- It refers to the flow of injections and withdrawals that will affect the level of transactions and output which will affect the level of national income through the multiplying effect. 

- The revenue that the economy creates from the sales of domestic goods and services to the foreign nations. 

- The expenditure made by the residents and citizens of the local economy on the goods and services that are bought from the foreign nations.

- The difference between the revenue earned by the local economy from the sale of the domestically produced goods and services to the foreign and the expenditures made by the domestic sector on foreign-produced goods and services. Export revenue minus Import expenditure (X – M). 

- It refers to purchases of goods and services that the government spends in ordinary and development expenditure in areas such as defence and education. It is assumed to be autonomously determined.

- It refers to expenditure on goods that are capital goods or assets which are for the production of finished goods after discounting for inflation, expressed at base year price level.

- MEI shows the relationship between the rate of interest and the level of investment per year which is motivated by the notion of profitability, affected by the cost of borrowing and the rate of return on investment. 

- The amount of investment on capital equipments used for the replacement of capital equipments which are worn-out. 

- The level of investment expenditure made after the expenditure made on the replacement of the worn-out machinery which will contribute to the growth of the national income.

- It measures the relative percentage change in the consumption in relation to the percentage change in income which will determine the value of the multiplier. 

- Nominal capital goods or assets which are for the production of finished goods which consists three types of components before discounting for inflation, expressed at current year price level. (Business fixed investment. Residential investment, Business inventories).

- It refers to the expenditure made by consumers on the finished consumer goods which consists of induced and autonomous consumption (independent consumption), before discounting for inflation, expressed at current year price level. Consumption function, C=a + (MPC)YD 

- It refers to the expenditure made by consumers on the finished goods after discounting for inflation, expressed at base year price level. 

- The proportion of income spent on consumer goods and services or the ratio of consumption expenditure to income.

- The total quantity demanded of all gods and services at different price level made in an economy, ceteris paribus. It also represents the total expenditure of the economy. AD= C+I+G+ (X-M)

- The quantity supplied of all goods and services at different price levels, ceteris paribus. It is also the total output of goods and services that the entire economy is producing and would sell at each price level.