1.1 circular flow of income Flashcards
1
Q
Definition of the circular flow of income
A
A flow of spending and income throughout the economy
2
Q
Three injections into the economy
A
Export expenditure (X)
Investment (I)
Government spending (G)
3
Q
Three leakages out the economy
A
Net savings
Net taxes
Import expenditure (M)
4
Q
Measuring national income
A
The value of all G+S produced by a FoP in a country during a specific time period
