Categorieën: Alle - income - spending - equilibrium - injection

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1702

Circular flow of income in two three and four sector economies

The circular flow of income illustrates the movement of money between different sectors of an economy. In a two-sector economy, comprised of households and firms, households spend their entire income on consumption, and any savings represent a leakage.

Circular flow of income in two three and four sector economies

Circular flow of income in two three and four sector economies

Circular flow of Income in a Four - sector Economy

leakage equal injection equation : I t G t X = S t T tM
Y = C t I t G t X - M
For exports,country receives payment from abroad .While imports are payment made for purchase the goods and service to foreigners.So,import is a leakage.
There is now export and import

Circular flow of Income in a Three - sector Economy

Circular flow of Income in a Two-sector Economy