2.4.2 Injections and withdrawals

Question 1

Injection into the circular flow

Answer 1

Money entering the economy - Investment, Government spending, Exports

Question 2

Withdrawal from the circular flow

Answer 2

Money leaving the economy - Savings, Taxation, Imports

Question 3

Injections>withdrawals

Answer 3

Circular flow increases, resulting in an increase in real GDP

Question 4

Withdrawals>Injections

Answer 4

Circular flow decreases, resulting in a decrease in real GDP