Problem 1. Defining terms and characterising them as Income, Expenditure or Output

Wages – Periodic payments for labour
Employer’s view – expenditure
Employee’s view – Income

Consumption – household expenditure on goods and services for a specific period
Expenditure

Rent – periodic expenditure for the use of capital assets
Landlord/Asset owner – Income
Tenant/Lessee – expenditure

Government Expenditure – expenditure of a day-to-day nature by a Government
Expenditure

Manufacturing Output - the output from labour and capital
Output

Interest Payments – The cost of borrowing
Bank – Income
Borrower – Expenditure

Loans – a sum of money given or received at an agreed rate of interest
Issuer – Income
Borrower - Expenditure

Bank Deposits – cash savings held at a bank
Bank – Income

Bonds – A guaranteed loan made from a country or company with or without coupon payments.
Issuer – Expenditure
Borrower – Income

Equities – capital investment in companies
Issuer – Income
Borrower – Expenditure

Money Balance – How much money/wealth in the form of readily available purchasing power – consumers and firms actually hold at a given moment.
Output