Circular Flow Of Income Flashcards

1
Q

What are the injections

A

X, G, I

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2
Q

What are the leakages

A

S, T, M

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3
Q

What flows from households to firms

A

Consumption

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4
Q

What flows from firms to households

A

Income

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5
Q

What happens if injections are bigger

A

The economy expands

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6
Q

What happens if leakages are bigger

A

The economy contracts

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