Economics Introduction HNC
- Created by: Lindsay henderson
- Created on: 07-03-12 19:16
Circular flow of income. Income, expenditure, firms and businesses are all part of the circular flow of income.
Injections.
Government spending represented by the letter G are benefits, pensions, small business grants, improving roads, houses and hospitals.
Investments represented by the letter I are the purchase of long term goods, equipment, vehicles and buildings. This tends to come from businesses rather than households.
Exports represented by the letter X are sales made outside of the UK so the money comes into the UK flow from another countries flow.
Withdrawals.
Taxes represented by the letter T are funds taken out of the flow in the form of VAT or income tax.
Savings represented by the letter S are funds taken out of the flow by individuals or businesses to set aside for hard times.
Imports represented by the letter M are sales…
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