Circular flow of income

Easy

The diagram below illustrates the circular flow of income for an open economy with a government sector.

Which of the following correctly identifies the macroeconomic flows represented by $W$ , $X$ , $Y$ , and $Z$ ?

$W$ : Consumer Expenditure; $X$ : National Income; $Y$ : Government Spending, Investment, and Exports; $Z$ : Saving, Taxation, and Imports

$W$ : National Income; $X$ : Consumer Expenditure; $Y$ : Saving, Taxation, and Imports; $Z$ : Government Spending, Investment, and Exports

$W$ : National Income; $X$ : Consumer Expenditure; $Y$ : Government Spending, Investment, and Exports; $Z$ : Saving, Taxation, and Imports

$W$ : Consumer Expenditure; $X$ : National Income; $Y$ : Saving, Taxation, and Imports; $Z$ : Government Spending, Investment, and Exports

Circular flow of income Questions