Year 9 Circular Flow of Income

Equilibrium is when:

• Injections = Leakages

• Injections > Leakages

• Injections < Leakages

Ms Fittall buys a coffee from a local cafe

• Consumption

• Income

• Export

• Investment

The WA Government builds a new school

• Government Spending

• Investment

• Taxation

• Expenditure

The WA Government builds a new school

• Injection

• Leakage

When you buy a house, you have to pay the government stamp duty.

• Taxation

• Investment

• Government Spending

• Export

When you buy a house, you have to pay the government stamp duty.

• Injection

• Leakage

Fred receives a $500 bonus in his pay and decides to save it.

• Injection

• Leakage

Bank West provide Ms Fittall's favourite cafe with a loan so they can upgrade their coffee machines.

• Investment

• Saving

• Expenditure

• Exports

Bank West provide Ms Fittall's favourite cafe with a loan so they can upgrade their coffee machines.

• Injection

• Leakage

International students come to study at Australian universities.

• Investment

• Taxation

• Export

• Import