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Circular flow and the multiplier

Circular flow and the multiplier

Circular flow diagram showing an initial injection, repeated rounds of household income and consumption, and leakages as saving, taxation, and imports Aggregate demand is total planned spending, AD=C+I+G+(X−M)AD = C + I + G + (X - M)AD=C+I+G+(X−M). In the circular flow, injections such as investment, government spending and exports add demand, while leakages such as saving, taxation and imports drain it away.

The multiplier and the accelerator Lesson

  1. A Level
  2. /Economics
  3. /The multiplier and the accelerator

Step-by-step lessons on OCR A Level Economics The multiplier and the accelerator. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.

Lessons