Economics: Demand, Supply & Equilibrium

Economics: Demand, Supply & Equilibrium

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Circular flow of economic activity

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1

How to measure circular flow of economic activity?

 Output method

1  Expenditure method

2  Income method

3

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2

What can you determine from this circular flow?

 Extent of economic growth

1

2

3

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 Measure change in living standards over time

 Comparative analysis between economies/sectors

3

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