Income flows and wealth effects
- Created by: Lottie
- Created on: 13-03-12 16:49
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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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