1.Investment
2.Government spendings
3.Exports
Leakages = Injections
Taxation Imports Savings
if leakages are greater than injection the circular flow will be in disequilibrium because more money is leaving the circular flow
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Cached - SimilarYou +1'd this publicly. UndoIn economics, the terms circular flow of income or circular flow refer to a simple economic model which describes the reciprocal circulation of income
Leakages = Injections
Taxation Imports Savings
if leakages are greater than injection the circular flow will be in disequilibrium because more money is leaving the circular flow
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Cached - SimilarYou +1'd this publicly. UndoIn economics, the terms circular flow of income or circular flow refer to a simple economic model which describes the reciprocal circulation of income
The three phases of circular flow of income are; 1.production of goods and services 2.distribution or generation of income and 3.expenditure or disposition of income
The movement of income from producers of goods and services to consumers, and back to the producer is known as the circular flow. Circular flow is generally shown in a circular flow chart or model.
product market
An individual receives an income.
Aggregate demand
Circular Flow Of Income
from the household, the income flow which is the purchase of goods and services will become firms. then the income flow from the firms which is the wages, interest and rents will go back to the households.