Principles of Macroeconomics/Aggregate Activity and Demand/Macroeconomic model

4.2 The macroeconomic model
Models are tools by which we simplify reality. They consist of variables that are related by theory, which means a change in one set of factors leads to a subsequent change in other factors. The first set is sometimes referred to as determinants, and the second set is referred to as outcomes.

4.2.2.2 Jobs
As a brief refresher, three major macroeconomic goals are price stability, economic growth, and full employment. Some primary and interrelated outcomes from the goal-based macroeconomic model are outputs and jobs. Those two outcomes that represent employment as resources such as labor, land, and capital are employed in producing outputs. In essence, workers produce outputs, their work generates income, and their income is spent on the outputs from the work of others. The association between outputs and incomes, in part, influences both the prices of goods and services and the price level.