The Circular Flow Of Income Flashcards
1
Q
Income flows
A
Between firms and households
2
Q
Formula of circular Flow of income
A
National output = national income = national expenditure
3
Q
There are injections and
A
Withdrawals from the flow of income
4
Q
Injections
A
Exports, investment and government spending
5
Q
Withdrawals
A
Imports, savings, taxes
6
Q
What effect do injections have on the circular flow
A
A multiplier effect
7
Q
Wealth is
A
Different to income
