Circular flow of Income

What are the 3 leakages in the Circular Flow Income Model?

• Financial Sector, Government Sector and Overseas Sector

• Savings, Taxation and Imports

• Savings, Taxation and Exports

• Investment, Government Spending & Exports

What does GDP stand for?

• Good Domestic Pets

• Grand Diamond Products

• Gross Domestic Product

• Grand Domestic Prizes

If the economy is CLOSED - which sector is not included?

• Government Sector

• Financial Sector

• Household Sector

• Overseas Sector

What are the 3 injections in the Circular Flow Model?

• Taxation

• Government Spending

• Exports

• Investment

In the Circular Flow Model, savings is a leakage into which sector??

(a)  

If Consumption, Investment, Government Spending and Exports remain the same, but Imports INCREASE - what will happen to GDP?

• It will decrease

• It will increase

• It will stay the same

• Won't have an affect on the GDP

Which sector is missing from this picture?

(a)  

Which sector is missing from this model?

(a)