Circular flow and gross domestic product ppt video online download an expanded circular flow diagram ccuart
{"Image DocumentName": "An Expanded Circular-Flow Diagram", "Image ImageDescription": "Government purchases of goods and services. Government borrowing. Government. Taxes. Government transfers. Consumer spending. Private savings. Households. Wages, profit, interest, rent. Markets for goods and services. Factor Markets. Financial Markets. Wages, profit, interest, rent. Figure Caption: Figure 7-1: An Expanded Circular-Flow Diagram: The Flows of Money Through the Economy. A circular flow of funds connects the four sectors of the economy\u2014households, firms, government, and the rest of the world\u2014via three types of markets: the factor markets, the markets for goods and services, and the financial markets. Funds flow from firms to households in the form of wages, profit, interest, and rent through the factor markets. After paying taxes to the government and receiving government transfers, households allocate the remaining income\u2014 disposable income\u2014to private savings and consumer spending. Via the financial markets, private savings and funds from the rest of the world are channeled into investment spending by firms, government borrowing, foreign borrowing and lending, and foreign transactions of stocks. In turn, funds flow from the government and households to firms to pay for purchases of goods and services. Finally, exports to the rest of the world generate a flow of funds into the economy and imports lead to a flow of funds out of the economy. If we add up consumer spending on goods and services, investment spending by firms, government purchases of goods and services, and exports, then subtract the value of imports, the total flow of funds represented by this calculation is total spending on final goods and services produced in the United States. Equivalently, it\u2019s the value of all the final goods and services produced in the United States\u2014that is, the gross domestic product of the economy. Borrowing and stock issues by firms. GDP. Firms. Foreign borrowing and sales of stock. Exports. Rest of the world. Foreign lending and purchases of stock. Imports.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}