Circular flow of income

2,748 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,748
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
53
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Circular flow of income

  1. 1. Product Market HouseholdFirms Resource Market Government
  2. 2. Product Market HouseholdFirms Resource Market Government Sell Inputs to Production Purchase Inputs to Produce SellGoods and Services Consumption of Goods and Service
  3. 3. Product Market HouseholdFirms Resource Market Government Income from Factors of Production Resource Costs (Nominal) Revenue from the Sale Consumption Expenditures
  4. 4. Product Market HouseholdFirms Resource Market Loanable Funds PayTaxes GovernmentForeign Buying and Selling of Goods and Services
  5. 5. Product Market HouseholdFirms Resource Market Loanable Funds GovernmentForeign Budget Deficient Save (Excess Funds) Borrowed Funds (Investment)
  6. 6. Product Market HouseholdFirms Resource Market Loanable Funds GovernmentForeign Supply (excess funds) Imports and Exports Borrowed Funds (Investment) Save (Excess Funds) Budget Deficient Buying and Selling of Goods and Services PayTaxes Revenue from the Sale Consumption Expenditures Income from Factors of Production Resource Costs (Nominal) Sell Goods and Services Purchase Inputs to Produce Sell Inputs to Production Consumption of Goods and Services

×