2.4.2 Injections And Withdrawals ✅ Flashcards
1
Q
What are injections and name them?
A
Money added into the circular flow of income (increases it).
X exports
G government spending
I investment
2
Q
What are withdrawals and name them?
A
Money removed from the circular flow of income (decreasing it).
M imports
S saving
T taxation
3
Q
What happens when the injections are larger than withdrawals?
A
Economic growth.
4
Q
What happens when withdrawals are larger than injections?
A
Fall in GDP.
5
Q
What can effect the value of input of an injection?
A
Multiplier.
6
Q
What do injections represent?
A
New income into the flow.
7
Q
What will also change the size of flow of income?
A
The factors that effect injections and withdrawals.
8
Q
What are net effects?
A
The total or injection and withdrawal.
