Circular Flow of Income Flashcards
1
Q
Explain a Withdrawal
A
A transaction that leads to the removal of money from the economy
2
Q
Explain an injection
A
A transaction that leads to the increase of money within an economy
3
Q
Explain national income
A
The total value of income received by people in an economy
4
Q
Explain national output
A
The total value of output produced by firms
5
Q
Explain national expenditure
A
The total amount spent on goods and services
6
Q
Give 3 withdrawals
A
Tax
Imports
Saving
7
Q
Give 3 injections
A
Govt. spending
Investment
Exports
