You have leakages from your circular flow.
since there will be leakages from the circular flow
if leakages are greater than injection the circular flow will be in disequilibrium because more money is leaving the circular flow
Leakages = Injections
The leakage is income received by consumers but not returned to the firms. There are main 3 leakages: savings of consumers ( when consumers save money in banks for using them in the future); imports (when consumers buy products produced by the foreign country, the potential income flows out of the economy's circular flow; thus, this expenditures do not return to the firms);taxes (so that government can pay for health care and education).
A circular flow model
since there will be leakages from the circular flow
since there will be leakages from the circular flow
if leakages are greater than injection the circular flow will be in disequilibrium because more money is leaving the circular flow
Leakages = Injections
The leakage is income received by consumers but not returned to the firms. There are main 3 leakages: savings of consumers ( when consumers save money in banks for using them in the future); imports (when consumers buy products produced by the foreign country, the potential income flows out of the economy's circular flow; thus, this expenditures do not return to the firms);taxes (so that government can pay for health care and education).
Leakages refer to money flowing out of the circular flow of income, such as savings, taxes, and imports, which reduce the total spending in the economy. Injections, on the other hand, refer to money flowing into the circular flow of income, such as investment, government spending, and exports, which add to the total spending in the economy. Together, leakages and injections help maintain equilibrium in the economy.
A circular flow model
Circular flow means the pattern in which goods,services,and resources flow in the marketplace.
Draw and explain circular flow model
Taxation Imports Savings
what does a circular model of a mixed economy show
The flow through a circular channel goes in a roundabout motion.