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Circular Flow Of Income Model
Beginning of paper
The demonstrates the important relationships between sectors in the Australian economy. It can also be useful for understanding and explaining current conditions of these sections. It is a useful tool in evaluating the government budget and areas of spending to keep the economy stable.
The is made up of five sectors. These include the
.... Middle of paper
.... and flood mitagation programs.The final sector of the circular flow model is the foreign sector. The foreign sector represents another set of leakages and injections in the circular flow and, therefore, another opportunity for loss of equilibrium.
The current state of the household sector is in a slight slump. The household sector is reluctant to buy goods at the cirrent point in time. The income they are recieving is lower than what it has b ....
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Number of words: 867
Number of pages: 4 (approx. 250 words per double-spaced page)
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