EconomicsCode 9708
Introduction to the circular flow of income
What this topic asks you to be able to do
- the circular flow of income in closed and open economies, tracing how income passes among households, firms and government and through the international economy
- injections into, and leakages from, the flow of income (the multiplier is not needed)
- the flow of income in equilibrium and in disequilibrium (marginal and average propensities are not needed)