Topics
Leakages (Circular Flow)
The main leakages out of the circular flow of income are:
- Taxes: This is when the government takes money from businesses and households in the form of taxes.
- Savings: This is when businesses and households save money instead of spending it.
- Imports: This is when businesses and households buy goods and services from other countries.
Leakages take money out of the circular flow of income, which can lead to economic slowdown.
See also
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IB Economics - The Circular Flow of Income Model
Study Notes
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2.4.1 Circular Flow Model (Edexcel A-Level Economics Teaching PowerPoint)
Teaching PowerPoints
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4.2.2.1 Circular Flow Model (AQA A-Level Economics Teaching PowerPoint)
Teaching PowerPoints