Circular Flow Of Income Flashcards
1
Q
What are the injections
A
X, G, I
2
Q
What are the leakages
A
S, T, M
3
Q
What flows from households to firms
A
Consumption
4
Q
What flows from firms to households
A
Income
5
Q
What happens if injections are bigger
A
The economy expands
6
Q
What happens if leakages are bigger
A
The economy contracts