Project_Circular Flow of Income Activity_student guide (1).docx

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Assignment SummaryFor this assignment, you will complete a worksheet to analyze statistics related to the economiesof three nations and explain the role of government in the circular flow of income.Background InformationThe circular flow of income is the exchange of money between firms and households. Firms payincome to households as wages to workers. In turn, workers use that money to buy goods andservices. This provides revenue to firms to produce more goods and services and pay moreworkers, and the cycle continues. Injections into the economy and withdrawals from it can affectthis flow of money. In a mixed-market economy, government plays a role as well. The governmentcollects money from households in the form of taxes. It spends this money on a variety ofprograms and projects, including defense spending, healthcare costs, and infrastructure.Governments also make trade deals to control the flow of goods and funds between countries,which affects nations’ incomes.For this project, you will study tables with statistics related to the incomes of three nations. Then,you will write short paragraphs to explain these statistics and analyze national income.

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Term
Fall
Professor
N/A
Tags
Economics, Sovereign state

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