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What is Four Sector Model of Circular Income Flow about?
- The document discusses the four sector circular flow model of an economy, including the household, firm, government, and foreign sectors. It describes the income flows and transactions between these sectors in the goods, factor, and financial markets. - Key aspects covered include leakages (saving, taxes, imports) and injections (investment, government spending, exports) that influence the total income flow. The equilibrium condition balances total income with consumption, investment, government spendin
- Author
- Pratham Kundu
- Language
- EN