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You have leakages from your circular flow.
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∙ 15y ago
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Why is the circular flow model only a theory?
since there will be leakages from the circular flow
What happens when leakages are greater than injections?
if leakages are greater than injection the circular flow will be in disequilibrium because more money is leaving the circular flow
What is the condition for equilibrium in the complete circular flow model?
Leakages = Injections
What are the leakages out of the circular flow of income and output?
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).
What is the role for consumers and producers in a free market system?
A circular flow model
Why is circular flow model only a theory?
since there will be leakages from the circular flow
Why is the circular flow model only a theory?
since there will be leakages from the circular flow
What happens when leakages are greater than injections?
if leakages are greater than injection the circular flow will be in disequilibrium because more money is leaving the circular flow
What is the condition for equilibrium in the complete circular flow model?
Leakages = Injections
What are the leakages out of the circular flow of income and output?
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).
What is the role for consumers and producers in a free market system?
A circular flow model
What does circular flow mean?
Circular flow means the pattern in which goods,services,and resources flow in the marketplace.
What is Circular flow of income model withdrawal from the circular flow?
Taxation Imports Savings
Draw a circular flow model of economics?
Draw and explain circular flow model
The circular flow model of a mixed economy shows .?
what does a circular model of a mixed economy show
How would you describe the flow through circular channel?
The flow through a circular channel goes in a roundabout motion.
What is the difference between leakages and injections into the income flow of a country?
what do you want me to comment about leakeges and injection
