What is the Circular Flow of Income Model primarily used to illustrate?

Circular Flow & Aggregate Expenditure

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Other
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11th Grade
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Medium

Tristan France
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25 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The flow of goods and services in an economy
The flow of income and expenditure in an economy
The flow of government policies
The flow of international trade
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is NOT a component of Aggregate Expenditure?
Consumption
Investment
Government Spending
Imports
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the Circular Flow of Income Model, households provide which of the following to firms?
Goods and services
Factors of production
Government policies
Taxes
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which factor is most likely to increase Aggregate Expenditure?
A rise in interest rates
A decrease in consumer confidence
An increase in government spending
An increase in taxes
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What are leakages in the Circular Flow of Income Model?
Injections into the economy
Withdrawals from the economy
Government spending
Exports
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is an example of an injection in the Circular Flow of Income Model?
Savings
Taxes
Exports
Imports
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The Multiplier Effect is best described as:
The initial change in spending leading to a larger change in national income
The reduction in spending due to increased taxes
The increase in spending due to lower interest rates
The effect of inflation on purchasing power
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