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Need questions answered thoroughly and correctly. Looking for someone who is very strong in macroeconmics. Need A level work.
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Explanation & Answer
Attached.
Name _____________________________________________________
1. Add one set of arrows to the circular flow model above showing the direction of
money flows between agents and markets (label them, “money” or “M”) and a
second set of arrows showing the direction of commodity flows (label them,
“commodities” or “C”). (1 pt)
•
Briefly explain what we mean when we speak of a “market” and an “agent” in
the context of the circular flow model. (2 pts).
Basically, the term market refers to a platform which may occur in many forms
such as systems and establishments where people meet and exchange
commodities in exchange of cash from willing purchasers. An Agent on the
other hand refers to the sole judgement maker of the budget.
• The more complex circular flow model adds one more market to the model. What
market is that? What additional types of economic behavior does the addition of
that market make it possible to analyze? (2 pts)
The complex circular flow model adds government to the model.it includes
how the government taxes affects the economy and the relationship between it and
household and firms.In addition, it also illustrates how the government affects the flow of
goods and services
• The more complex model also adds two more types of economic agents. What
are those two additional types of agents? What additional types of economic
behavior does the addition of each type of agent make it possible to analyze? (4
pts) The complex model adds government sector as an agent.when government is
1
added to the model it affects the flow of income due to introduction of direct
taxes to the firms. In addition, it also adds the business sector which affects the
purchases of the various goods and services.
2
2.
Year
GDP in current dollars
GDP in base year dollars
1923
$3....