Questions and Answers
What are the three components of a simple economic model?
Households, firms
What are the components of a complex economic model?
Households, firms, saving, tax, investment, spending
What sectors are included in the five-sector circular flow model?
Consumers, businesses, financial institutions, government, overseas sector
What is the purpose of the five-sector circular flow model?
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What is the role of injections and leakages in the economy?
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