Income flows and wealth effects

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  • Created by: Lottie
  • Created on: 13-03-12 16:49

Income flows

  • circular flow of income
  • measured by GDP
  • leakages- withdrawals from economy e.g. svaings, tax & imports
  • injections - investments into the economy e.g. gov spenind  & exports
  • multiplier- number of times a change in Y exceeds the change in the injections that caused it e.g £10 mil in imports…


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