Circular Flow

Question 1

What are the sectors in the Circular Flow?

Answer 1

Government Sector, Fiance Sector, Overseas Sector, Houshold Sector and Business Sector

Question 2

What are the leakages in the circular flow?

Answer 2

Taxation, Imports, Saving

Question 3

What are the injections in the circular flow?

Answer 3

Investments, exports and government expenditure

Question 4

Draw the circular flow in the book you lazy whore!

Answer 4

Okay

Question 5

What is the 2 sector economy?

Answer 5

The two sector economy is the business and household sector. The household sector provides the business sector with land, labour and capital as well as purchase of goods and services. The business sector provides the houshlold sector with income and goods and services.

Question 6

What is the formula for the circular flow model?

Answer 6

C+S+T+M = C+I+G+X

Question 7

What are the formulas for equilibrium?

Answer 7

I=O=E
C+S = C+I