National Income Accounting and Macro Goals · Macroeconomics

The Circular Flow of Income

Modeling the flow of goods, services, and money between households, firms, and the government.

Key Questions

  1. 1How do leakages and injections determine the equilibrium level of national income?
  2. 2What incentives drive households to save rather than consume?
  3. 3How does a change in investment spending ripple through the entire economy?

MOE Syllabus Outcomes

MOE: The Circular Flow of Income - JC1
Level: JC 1
Subject: Economics
Unit: National Income Accounting and Macro Goals
Period: Macroeconomics

Suggested Methodologies

Ready to teach this topic?

Generate a complete, classroom-ready active learning mission in seconds.

Generate a Custom MissionBrowse Lesson Plan Templates

More in National Income Accounting and Macro Goals

Measuring Economic Performance

Understanding GDP, inflation rates, and unemployment as indicators of economic health.

2 methodologies

Browse curriculum by country

AmericasUSCAMXCLCOBR
EuropeUKIEFRDEESITNLPTSE
Asia & PacificINSGAU