| A | B |
|---|
| Central Government | Elected organisation that is responsible for running the country |
| consumption (consumer spending) | total spending by consumers on goods and services |
| direct tax | tax that is paid straight to the government (eg PAYE) |
| exports | goods that are sold overseas |
| exporter | firm that sells goods overseas |
| export receipts | money that is received from selling goods overseas |
| financial institutions (financial intermediaries) | banks and other firms that channel money from savers to borrowers.They recieive money from savers and make loans to borrowers |
| financial sector | this includes all financial insititutions |
| government revenue (T) | income of the government that comes mainly from taxes (its symbool is T) |
| government spending (G) | spending by the government on goods and services eg health and education |
| household | a group of people living under one roof |
| import payments | the cost of buying goods from overseas producers |
| indirect tax | tax paid to the government by a third party such as when a firm collects GST from a customer and then passes it on to the IRD |
| Investment (I) | when a firm buys new capital goods |
| Balance of Payments (Balance on Current Account) | export receipts - import payments |
