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Circular flow of income

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Question 12

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

Circular Flow of Income Diagram

Which of the following correctly identifies the economic concepts represented by the arrows WWW, XXX, and ZZZ?

WWW: Savings (Leakage); XXX: Government Spending (Injection); ZZZ: Imports (Leakage)

WWW: Investment (Injection); XXX: Taxes (Leakage); ZZZ: Exports (Injection)

WWW: Savings (Leakage); XXX: Government Spending (Injection); ZZZ: Exports (Injection)

WWW: Investment (Injection); XXX: Taxes (Leakage); ZZZ: Imports (Leakage)

Circular flow of income Questions

  1. A Level
  2. /Economics
  3. /Circular flow of income