Real and Money Flow in Economics

Factors of production = Real flow Goods and services = Real flow Factor remuneration = Money flow Consumption expenditure = Money flow

Savings = Leakages Taxation = Leakages Payment for Imports = Leakages Investment = Injections

Government expenditure = Injections Payments for exports = Injections Factors of production from foreign countries = Real flow Goods and services to foreign countries = Real flow

<p>S + T + M = Leakages G + I + X = Injections Real flow from South Africa to foreign countries (exports) = Real flow Money flow from producers to households (factor remuneration) = Money flow</p> Signup and view all the answers

<p>Foreign countries to South Africa (imports) = Real flow Expenditure of households and income of producers (consumption expenditure) = Money flow Equilibrium condition (L = J) = Equations Flow of factor remuneration representing expenditure of producers and income of households = Money flow</p> Signup and view all the answers

<p>Factor markets to producers = Real flow Producers via goods markets to households and other users of goods and services = Real flow Wages, rent, interest, and profit (factor remuneration) = Money flow Outflow of money from the economy (leakages) = Leakages</p> Signup and view all the answers