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Circular Flow Of Income Model
Part 1 of Paper ....o be useful for understanding and explaining current conditions of these sections. It is a useful tool in evaluating the government budget and areas of spending to keep the economy stable.
The is made up of five sectors. These include the
household, firms, finance, government, and external sectors. Each of these secto.... Part 2 of Paper .... The foreign sector represents another set of leakages and injections in the circular flow and, therefore, another opportunity for loss of equilibrium.
The current state of the household sector is in a slight slump. The household sector is reluctant to buy goods at the cirrent point in time. The income they are recieving is lower than what it has been, which would explain the drop in consumption. There has also been a noticable drop in the amount the sector has been saving. I have based my annal.... |
Number of words: 867 - Approximate pages: 4 |
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