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What is three-sector economy?

Updated: 12/11/2022
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Thamaliwickramaarach...

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10y ago

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In a Three-sector economy ,along with the household sector & business sector there is government sector too.Because the government can influence on the circular flow of income in 2 ways.1.It collects taxes[=T] from households & firms,and2.it makes various payments [=G] to household & business sectors.Here taxes can be taken as a lekage & government expenditure as an injection.

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