CIMA BA1 Syllabus A. Macroeconomic And Institutional Context Of Business - The Circular Flow Of Income - Notes 3 / 17
The circular flow of income
Firms pay workers -so people get INCOME
Firms make goods and people SPEND on those goods
This is the CIRCULAR FLOW of income / expenditure
INJECTIONS increase the Circular Flow
These are:
Exports (More money coming from abroad) (X)
Government Spending (helps firms and people spend more) (G)
Investments (I)
WITHDRAWALS decrease the Circular Flow
These are:
Imports (Money leaving for abroad) (M)
Savings (money not being spent) (S)
Tax (Money not being spent) (T)
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Syllabus A. Macroeconomic And Institutional Context Of Business
A1. Factors Affecting National Income
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Syllabus A. Macroeconomic And Institutional Context Of Business
A1. Factors Affecting National Income