Investment, government spending, and exports are three injections in the economy. They contribute to increasing the demand for goods and services in the economy and, therefore, stimulate more job and income creation. What is injection? An
Circular Flow of Income
Injections and Leakages in the Circular Flow of Income: Examples and Impacts
What's it: Injection and leakage illustrate how income in the economy does not flow entirely in a circular flow diagram. Leakages refer to withdrawals, for example, due to savings, taxation, and imports. They are withdrawn because income is not
Circular Flow of Income: Types and Descriptions
What's it: A circular flow of income model shows you the economy's movements of spending and income. Brief overview: In the economy, such flow is more complicated. It involves four macroeconomic sectors: And remember, the foreign