The circular flow of income model demonstrates the important relationships between sectors in the Australian economy. It can also be useful for understanding and explaining current conditions of these sections. It is a useful tool in evaluating the government budget and areas of spending to keep the economy stable. The circular flow of income model is made up of five sectors. These include the household, firms, finance, government, and external sectors. Each of these sectors has a vital and realistic role to play. The household secotr comprises of basic consuming units in society, but it is also the....

Number Of Words: 852

Number Of Pages: 4

Join today and get unlimited access to our vast database of student-written essays and term papers. This paper along with over 45,000 other papers are available in our member's area right now. Full instant access is just seconds away! Membership Options Price 1 month  subscription $18.95 recurring        3 months subscription $34.95 recurring        6 months subscription $59.95 non-recurring