2.4.2 Flashcards
1
Q
Injection
A
An injection into the circular flow of income is money which enters the economy
This is in the form of government spending, investment and exports
2
Q
Withdrawal
A
A withdrawal from the circular flow of income is money which leaves the economy
Taxes, saving, imports
3
Q
Net injections
A
Expansion of national output
4
Q
Net withdrawals
A
Contraction of production so output decreases
