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Open economy circular flow model
Transcript of Open economy circular flow model
Labour / Land / Capital / Entrepreneurship Wages / Rent / Interest / Profit Factor market Aggregate Income (Y) Goods and services Comsumption Expenditure (C) Goods market Government Tax Indirect Tax Bank /
Stock Exchanges / etc. Benefits (B) Saving
(I) Foreign Financial Market Payment for M Imports (M) Exports (X) Payment for X Direct Tax Government Borrowing Government Spending (G)
Subsidies (Su) Imports (M) Payment for M