Circular Flow Language

People who work (provide labour) and earn wages. They spend money on goods and services.

• Goods and Services Tax (GST)
• Households
• Government
• Consumer Spending

Companies that produce goods and services and pay wages to workers.

• Real Flows
• Labour
• Consumer Spending
• Businesses

The group that collects taxes and spends money on public services like roads, healthcare, and education.

• Export Receipts
• Goods and Services
• Government
• Labour

Banks and other places that hold savings and lend money to businesses and people.

• Government
• Investment
• Exports
• Financial Institutions

Trade with other countries where NZ exports (sells) goods and imports (buys) goods.

• Goods and Services Tax (GST)
• Overseas Sector
• Government
• Export Receipts

The movement of goods, services, and resources (e.g., labour, exports, imports).

• Real Flows
• Taxation
• Exports
• Households

The movement of income and expenditure (e.g., wages, consumer spending, export receipts, import payments).

• Public Services
• Money Flows
• Overseas Sector
• Export Receipts

The money businesses pay to workers in exchange for their labour. (From businesses to households)

• Public Services
• Wages
• Goods and Services
• Exports

The money households spend on goods and services. (From households to businesses)

• Consumer Spending
• Imports
• Import Payments
• Export Receipts

The money households and businesses pay to the government. (From households and businesses to the government)

• Taxation
• Money Flows
• Wages
• Investment