The Circular Flow of Income
Students model the flow of income, expenditure, and output within an economy, including leakages and injections.
Key Questions
- Construct a diagram illustrating the circular flow of income in an open economy.
- Analyze the impact of leakages (savings, taxes, imports) and injections (investment, government spending, exports) on the economy.
- Explain how changes in the circular flow can lead to economic growth or contraction.
National Curriculum Attainment Targets
Suggested Methodologies
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