Circular Flow of Income
Economics ⇒ National Income and Related Aggregates
Circular Flow of Income starts at 12 and continues till grade 12.
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Describe the effect of an increase in exports on the circular flow of income in an open economy.
Describe the role of the government sector in the circular flow of income in a three-sector model.
Explain how taxes affect the circular flow of income.
Explain the concept of equilibrium in the circular flow of income.
Explain the difference between a closed and an open economy in the context of the circular flow of income.
Explain the difference between real flow and money flow in the context of the circular flow of income.
Explain the impact of government expenditure on the circular flow of income.
Explain the role of financial institutions in the circular flow of income.
Explain the significance of the circular flow of income model for policymakers.
If in an open economy, exports are Rs. 200 crore and imports are Rs. 150 crore, what is the net effect on the circular flow of income?
If total leakages in an economy are Rs. 500 crore and total injections are Rs. 600 crore, what will happen to the level of income?
In a four-sector model, which sector is added to the three-sector model?
In a two-sector model, if households save Rs. 100 crore and firms invest Rs. 100 crore, what will be the effect on the circular flow of income?
In the context of the circular flow of income, what is meant by 'leakages'?
What happens to the circular flow of income if leakages exceed injections?
What is meant by the term 'circular flow of income' in an economy?
