Circular Flow Of Income And Spending National income can be viewed from three interrelated angles, viz., (i) in terms of value of aggregate product, (ii) in terms of incomes accruing to factors of production generates income and (iii)in terms of total expenditure on production. Production gen...
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...
Circular flow of income is an economic model that illustrates how money moves through an economy between households and firms.
which generates further new spending (C), and further new income (Y), and so on. Spending and income continue to circulate around the macro economy in what is referred to as thecircular flow of income.
flow model is an economic model that presents how money, goods, and services move between sectors in an economic system. The flows of money between the sectors are also tracked to measure a country’s national income orGDP, so the model is also known as the circular flow of income. ...
The economy has a circle life much like nature. Money flows in a circular manner through consumers and businesses in an ideal system, but in reality all flows of income have leaks. Tracking the flow of money and finding leaks may help small businesses pl
Government spending (G):Governmentwelfare benefits; spending on infrastructure Withdrawals Withdrawals are leakages from the economy as a result of taxation, spending on imports, and monetary savings. Withdrawals reduce the flow of income. Savings (S):Money not used to finance consumption, e.g. sav...
3)National income(Y) So income, expenditure and output are three ways of measuring the same flow. To show that they must be identical and not just equal, we use the ≡ sign. O≡E≡Y Injections and withdrawals An injection into the circular flow is spending which does not come from hous...
If a country saves too much of its income this is withdrawn from the circular flow and the flow will decrease. This means that less income circulates and economic activity is reduced. Government Spending (G) and Taxation (T) Government taxes both the household and business, so that taxes (...
How can one draw a circular flow diagram of spending and income resulting from a massive layoff of employees in the auto industry?Answer and Explanation: Take a look at this lesson for a visual example of circular flow diagrams: https://...