government transfers

How Is The Government Involved In The Circular Flow Of Products?

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How Is The Government Involved In The Circular Flow Of Products? The government purchases goods from firms and also factors of production from households. Thus government purchases of goods and services are an injection in the circular flow and taxes are leakages in the circular flow. How is the government involved in the circular flow?

How Is The Government Involved In The Circular Flow Of Money?

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How Is The Government Involved In The Circular Flow Of Money? Injections into the economy include investment, government purchases and exports while leakages include savings, taxes and imports. … Government taxes leak out of the circular flow model, and then government spending injects them back into the economy. How does the government play a role