Macroeconomy, economics, Microeconomics

Adding the economic activities of government to the circular flow model shows that:
1. Government spending creates inflation
2. Government purchases of goods and services, taxes, and transfer payments affect how resources are allocated
3. The Federal government has to borrow funds from households in order to pay salaries to public officials and members of the armed forces
4. The economic functions of government are shared equally among Federal, state, and local governments
Posted Date: 3/4/2012 11:42:47 AM | Location : United States







Related Discussions:- Macroeconomy, economics, Assignment Help, Ask Question on Macroeconomy, economics, Get Answer, Expert's Help, Macroeconomy, economics Discussions

Write discussion on Macroeconomy, economics
Your posts are moderated
Related Questions
what is the use of models in economics?

Monopsony: Demonstrate (with a graph) how a minimum wage can increase both the wage and employment in a monopsony market even when the government sets th

What are the Policies and Long-Run Growth In many concerns it is decidedly odd that world distribution of output per worker is as unequal as it is. Migration, World trade and f

Smoking cigarettes is a leading cause of many diseases

Labour Extraction: Most employees under capitalism are paid according to time they spend at work. Though employers then face a challenge to extract genuine labour effort from their

Problem: "Mauritius offers an interesting case study of successful trade liberalization and export-led development in Sub-Saharan Africa. This is a notable achievement given t

1. Implicit and explicit revenues minus implicit and explicit costs equals: A. accounting profit. B. economic profit. C. zero profit. D. implicit profit. 2. A business owner mak

Functions of Money Money performs several important functions. It serves as a medium of exchange, a unit of account, a store of value and a standard of deferred payments. In a

Q. Explain about Capital Flight? Capital Flight: A destructive process in that investors (both domestic residents and foreigners) withdraw their financial capital from a countr

Utility-Expenditure Duality: Consider the minimisation of the  expenditures necessary to achieve a specified utility level. The solution for qi yields the compensated demand f