Circular Flow Of Income Diagram With Injections And Withdrawals. The circular flow of income is a good place to start. Withdrawals from the circular flow of incomes any structure that takes money out of the circular flow of incomes which is a simple model for the flow of money.
However not all income generated will be spent on domestically produced goods. Withdrawals are items that take money out of the circular flow. This process repeats itself and forms the circular flow of income.
There are additional kinds of spending that are not from households.
This process repeats itself and forms the circular flow of income. It allows you to see the general reasons why an economy might grow or shrink in size. The impact of injections into and withdrawals from the circular flow of income. National income national expenditure.
