Examine the circular flow of income as a fundamental concept in macroeconomics, illustrating the continuous exchange of goods, services, and money between households and firms. Explore the roles of injections (investment, government spending, and exports) and leakages (savings, taxes, and imports) in the circular flow model.
Investigate the concept of the circular flow of income, illustrating how goods, services, and money move between households and firms in an economy. Discuss the roles of injections and leakages in the circular flow model.
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