4.2 Introduction To Circular Flow Of Income Flashcards
1
Q
Meaning of the circular flow of income
A
A model that shows how income , spending and output move around an economy
2
Q
Leakages / withdrawals
A
3
Q
Injections
A
Injections are additions to the circular flow of income
Components:
A) Investments (I)
B) Government spending (G)
C) Exports (X)
J= I + G + X
4
Q
A
