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  • (Sample) Circular Flow of Incom & Expenditure

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    DiveshDutt
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    The document provides details about a PowerPoint presentation on the circular flow of income and expenditure, including the name of the teacher, their contact information, university and department details, topic, keywords, and a disclaimer by the content creator. It describes the circular flow model and how it illustrates the interdependence between households, firms, government, and the foreign sector through the flows of goods, services, and money in a closed economy, three sector economy, open economy, and role of banks and capital markets, including injections and leakages.

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    The document provides details about a PowerPoint presentation on the circular flow of income and expenditure, including the name of the teacher, their contact information, university and department details, topic, keywords, and a disclaimer by the content creator. It describes the circular flow model and how it illustrates the interdependence between households, firms, government, and the foreign sector through the flows of goods, services, and money in a closed economy, three sector economy, open economy, and role of banks and capital markets, including injections and leakages.

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    40 views12 pages

    (Sample) Circular Flow of Incom & Expenditure

    Uploaded by

    DiveshDutt
    The document provides details about a PowerPoint presentation on the circular flow of income and expenditure, including the name of the teacher, their contact information, university and department details, topic, keywords, and a disclaimer by the content creator. It describes the circular flow model and how it illustrates the interdependence between households, firms, government, and the foreign sector through the flows of goods, services, and money in a closed economy, three sector economy, open economy, and role of banks and capital markets, including injections and leakages.

    Copyright:

    © All Rights Reserved
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    E-Content Details

    Name of the Teacher Dr. Abdul Tayyab Khan


    Mobile No. 09795987187
    E-mail ID atkhan@iul.ac.in
    Designation Assistant Professor
    University Name Integral University, Lucknow
    College Name N/A
    Stream Name Management
    Faculty Name Faculty of Commerce & Management
    Department Name Deptt. of Commerce & Business Management
    Subject Name Macroeconomics
    Course BBA
    Course Duration 3 Years
    Sub-Topic Name Circular Flow of Income and Expenditure
    Content Type PPT
    Search Keywords Circular flow, Income & Expenditure, Open Economy, Sector Economy

    Dr. Abdul Tayyab Khan


    (Content Creator/Teacher)
    CIRCULAR
    FLOW OF
    DR. ABDUL TAYYAB KHAN
    INCOME &
    Department of Commerce &
    Business Management
    EXPENDITURE
    Integral University, Lucknow
    The Concept
    • The circular flow of income describes the
    movement of goods or services and income
    among the different sectors of the economy. It
    illustrates the interdependence of the sectors
    and the markets to facilitate both real and
    monetary flow.

    • The circular flow of income forms the basis for all


    the macroeconomic models of the economy and
    it is imperative to understand the circular flow
    model for understanding essential concepts like
    national income, aggregate demand and
    aggregate supply.
    Circular FlowAINJECTIONS
    Of
    ABANKS
    CLOSED
    THREE &
    Income
    AN OPENECONOMY
    ECONOMY
    SECTOR ECONOMY
    CAPITAL
    & LEAKAGES
    &
    MARKET
    Expenditure: The Mechanism
    A CLOSED ECONOMY

    A THREE SECTOR ECONOMY

    AN OPEN ECONOMY

    BANKS & CAPITAL MARKET

    INJECTIONS & LEAKAGES


    A CLOSED ECONOMY

    Factors of Production
    Land, Labour, Capital & Entrepreneurship

    Factor Income
    Rent, Wages, Interest & Profit

    Payment for Goods & Services


    HOUSEHOLD CORPORATE

    Flow of Goods & Services


    THREE SECTOR ECONOMY
    Transfer Payments
    & Expenditure Govt. Expenditure

    GOVERNMENT

    Payment for
    Taxes & Services
    HOUSEHOLD CORPORATE
    AN OPEN ECONOMY

    FOREIGN
    SECTOR

    Exports & Tariffs


    Revenue from

    Payments for
    Imports
    HOUSEHOLD CORPORATE

    GOVERNMENT
    BANKS & CAPITAL MARKET

    SAVINGS INVESTMENTS

    BANKS & CAPITAL


    MARKET

    HOUSEHOLD CORPORATE
    INJECTIONS & LEAKAGES
    • INVESTMENTS (I)
    • EXPORTS (X)
    • GOVT. SPENDINGS (G)

    ECONOMY

    • SAVINGS (S)
    • IMPORTS (M)
    • TAXES (T)
    THE 5 SECTORS OF AN ECONOMY

    HOUSEHOLD GOVERNMENT

    BANKS & CAPITAL


    MARKET

    CORPORATE FOREIGN SECTOR

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