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How does the government help with the circular flow of the economy?
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Explain four sector model with circular-flow diagram?
explain with the help of diagram circular flow of income model in a four sector economy?
What does the circular flow diagram represent?
Economists use a circular flow model to highlight basic fetures of a market economy. The model shows how voluntary exchange between households and businesses answer the economy's "who" "how" and for whom questions and create a nexessary flow of money products and resources to help satisy wants.
What does the simple circular flow show?
The circular flow model of a mixed economy shows how market systems work and how the business cycle occurs. It is made to help us understand how each sector of economy and how it flows together.
A circular-flow diagram is a model that?
A)help to explain how partipant in the econmy interact with one other . B)help to explain how the economy is organized . C)incorporate all aspects of the real economy. D)Both (a)and (b) are correct
Circular flow of income in an open economy?
Balance of payments sector, Government expenditure Assignment Help, Tutor HelpCircular Flow of Income in a Four Sector EconomyTake the inflows and outflows of the household, business and government sectors in relation to the foreign sector. The household sector buys goods imported from overseas and makes payment for them which is leakage from the circular flow. The households may receive transfer payments from the foreign sector for the services rendered by them in foreign countries.Conversely, the business sector exports goods to foreign countries and its receipts are an injection in the circular flow. Likewise, there are many services rendered by business firms to foreign countries such as shipping, insurance, banking etc. for which they receive payments from overseas. These are the leakages from the circular flow.Like the business sector modern governments also export and import goods and services and lend to and borrow from foreign countries. For all the exports of goods, the government receives payments from abroad.Similarly, the government receives payments from foreigners when they visit the country as tourists and for receiving education etc. and also when the government provides shipping, insurance and banking services to foreigners through the state owned agencies. It also receives royalties, interest, dividends etc. for investments made abroad. These are injections into the circular flow.Conversely, the leakages are payments made for the purchase of goods and services to foreigners. In the in the below diagram, the circular flow of the four sector open economy with saving, taxes and imports shown as leakages from the circular flow on the right hand side of the diagram and investment, government purchases and exports as injections into the circular flow on the left side of the figure.Further, imports, exports and transfer payments have been shown to arise from the three domestic sectors -- the household, the business and the government. These outflows and inflows pass through the foreign sector which is also called the "balance of payments sector".If exports exceed imports, the economy has a surplus in the balance of payments. And if imports exceed exports, it has a deficit in the balance payments. But in the long run, exports of an economy must balance its imports. This is achieved by the foreign trade policies adopted by the economy.The whole analysis can be shown in simple equations:Y = C + I + G ......Equation (1)Where Y represents the production of goods and services, C for consumption expenditure, I for investment level in the economy and G for Government expenditure respectively.Now we introduce taxation in the model to equate the government expenditure.Therefore Y = C + S + T ..........Equation (2)Where S is saving T is taxation.By equating (1) and (2), we get, C + I + G = C + S + TTherefore, I + G = S + TWith the introduction of foreign sector, we divide investment into domestic investment (Id) and foreign investment (If) and get Id + If + G = S + TBut If = X -- M, where X is exports and M is imports.Id + (X -- M) + G = S + TId + (X -- M) = S + (T -- G)The equation shows the equilibrium condition in the circular flow of income and expenditure.Circular Flow of Income in a Four Sector EconomyOnline Live Tutor Balance of payments sector, Government expenditure:We have the best tutors in Economics in the industry. Our tutors can break down a complex Balance of payments sector, Government expenditure problem into its sub parts and explain to you in detail how each step is performed. This approach of breaking down a problem has been appreciated by majority of our students for learning Balance of payments sector, Government expenditure concepts. You will get one-to-one personalized attention through our online tutoring which will make learning fun and easy. Our tutors are highly qualified and hold advanced degrees. Please do send us a request for Balance of payments sector, Government expenditure tutoring and experience the quality yourself.Online Circular Flow of Income in a Four Sector Economy in a Four Sector Economy Help:If you are stuck with an Circular Flow of Income in a Four Sector Economy in a Four Sector Economy Homework problem and need help, we have excellent tutors who can provide you with Homework Help. Our tutors who provide Circular Flow of Income in a Four Sector Economy in a Four Sector Economy help are highly qualified. Our tutors have many years of industry experience and have had years of experience providing Circular Flow of Income in a Four Sector Economy in a Four Sector Economy Homework Help. Please do send us the Circular Flow of Income in a Four Sector Economy in Four Sector Economy problems on which you need help and we will forward then to our tutors for review.
What is the purpose of vortex breaker and how it will help?
Vortex breaker prevents circular flow, this circular flow is known as vortex. Vortex breaker used in storage vessels, knockout drum, etc
How did Ferrari affect the economy?
They help increase cash flow.
What were Hover's philosophy of government?
government shouldn't help the people directly; the economy is a cycle.
What was Hitler planning to help the German economy?
Controling the world's economy and resources, and basically reforming the government.
How does the government help out people who live in a traditional economy?
the government sells buys and trades things from other countries to make sure his the economy has the right supplies
What is one way the federal government does not help stabilize the economy?
The federal government does not fix prices for products.
Why does the federal government have a significant impact on the Virginia's economy?
I don't know help me
