Week%203%20Lecture%20-%20HO

Week%203%20Lecture%20-%20HO - Circular Flow of Income and...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Circular Flow of Income and Expenditure Spendthrift Two Sector Economy FIRMS HOUSEHOLDS Goods Market Factor Markets Circular Flow of Income and Expenditure Frugal Two Sector Economy FIRMS HOUSEHOLDS GOODS MARKET FACTOR MARKETS Goods and Services Produced Consumption (C) $ $ $ Labor and Land $ Circular Flow of Income and Expenditure Three Sector Economy Government Revenue FIRMS HOUSEHOLDS GOODS MARKET FACTOR MARKETS FINANCIAL MARKETS Goods and Services Produced Consumption (C) Investment (I) $ $ $ $ $ $ $ Labor and Land Capital Interest And Dividends Wages and Salaries Rents Stocks and Bonds $ $ GOVERNMENT Saving (S) $ Circular Flow of Income and Expenditure Three Sector Economy Government Spending FIRMS HOUSEHOLDS GOODS MARKET FACTOR MARKETS FINANCIAL MARKETS Goods and Services Produced Consumption (C) Investment (I) $ $ $ $ $ $ $ $ Labor and Land Capital Interest And Dividends Wages and Salaries Rents Stocks and Bonds $ $ Saving (S) GOVERNMENT Circular Flow of Income and Expenditure Four Sector Economy Open Economy The Rest of the World (ROW) also participates in each of our markets: Goods Market: Factor Markets: Financial Markets: Income = Expenditure Y = C + I + G + NX Gross Domestic Product (GDP)...
View Full Document

Page1 / 20

Week%203%20Lecture%20-%20HO - Circular Flow of Income and...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online