Circular flow of Income Flashcards
1
Q
Injections
A
Investments, government spending and exports
2
Q
Withdrawals
A
Savings,taxes and imports
3
Q
Firms to households from injections
A
Rent, wages, interest and profit
4
Q
Firms to households
A
Goods and services
5
Q
Households to firms
A
Land, labour and capital
6
Q
Households to firms into withdrawals
A
Expenditure on goods and services
7
Q
Withdrawals = Injections
A
Economy stays the same
8
Q
Withdrawals > Injections
A
Economy decreases
9
Q
Withdrawals < Injections
A
Economy increases
10
Q
Measuring economic activity
A
- Expenditure method
- Income method
- Output method
