chapter 8 circular flow Chapter8:CircularFlowofIncome (收入循环流)1.Circularflowofincome 1.1Circularflowofincome1.2Savingandinvestment1.3GovernmentSpendingandTaxation1.4ExportsandImports 2.Growthanddeclineinthecircularflow 2.1Aggregatedemand2.2Multipliereffect 为了帮助保护您的隐私，PowerPoint禁止自动下载此...
The basic model is quite simplified in that it incorporates just two sectors: the household and firm sectors. This makes the circular flow model easier to understand but excludes significant elements of the economy that are quite important to understand how it functions in full. These are the th...
Introduction of government leads to leakage in income and expenditure through taxes and other compulsory payments made by the households and enterprises to the government. On the other hand, government purchases and other spendings add to total expenditure. Thus, stability in the circular flow require...
●Government spending ●Exports A withdrawal of leakage from the circular flow is spending which does not flow back from households to forms. There are three withdrawals which correspond to the three injections. ●Saving by households ●Taxes ●Imports In equilibrium, when there is no tendency to...
circularincomespendingflow支出流动 Income and Spending: The Circular Flow Ways to Measure GDP Circular Flow Three Ways to Measure GDP (1) The Product Approach. GDP = Total Output of Goods and Services (this is the definition of GDP we discussed earlier) (2) The Income Approach GDP = Total ...
Circular FlowA circular economy model tells us that there is a circular way in which an economy operates. In the simplest model, we only have the interactions between households and firms.Answer and Explanation: Become a member and unlock all Study Answers...
In economics, the circular flow model demonstrates how resources, money, credit, goods, and services move through the economy. Learn more about...
Wages, rents, interest, profits The Circular Flow Wages, rents, interest, profits Firms (production) Household Factor services Goods Government Spending Other countries Financial markets Government Taxes Savings Investment Personal consumption Exports Imports McGraw-Hill/Irwin © 2004 The McGraw-Hill Compa...
? Investment is an injection into the flow of income. 16 Aggregate Expenditure (AE): 2 sector Model ? Aggregate Expenditure (AE) is the total amount of spending on goods and services. ? In the 2 sector model there are 2 components of AE: – Private Consumption (C), and – Private ...
The assumptions of the circular flow model are the following: The household sector includes the consumers who have disposable income to spend on goods and services, seeking to satisfy their needs and wants. The business sector refers to all the firms operating in an economy, such as corporations...