Circular Flow of Income

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What is the circular flow equation

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National Income = National Expenditure = National Output

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What does circular flow of income look like

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7 Terms

1
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What is the circular flow equation

National Income = National Expenditure = National Output

2
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What does circular flow of income look like

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3
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When does economy shrink

When leakages > Injections

4
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When does the economy grow

when injections > leakages

5
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What happens when leakages = Injections

real GDP stays the same

6
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what makes up leakages

Savings

taxes

Imports

7
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What makes up injections

Exports

goverment spending

Investment