Skip to main content

This link is exclusively for students and staff members within this organisation.

Unauthorised use will lead to account termination.

Previous

Exam-style questions: Questions on income tax

Next

Fiscal policy: How can government intervene in food markets? And should it?

The circular flow of income

The challenges of economic modelling

Economic systems are among those highly complex structures that need to be understood through simplifications and models. In this article, Farzad Javidanrad looks at some of the challenges in economic modelling through the model of the circular flow of income

© kanpisut/stock.adobe.com

the determination of output, employment and prices, circular flow of income, expenditure and output

Suppose that you are working for the government civil service. A minister might, for example, ask you what the impact on the economy might be of a change in policy, such as an increase or decrease in taxes.

Your organisation does not have access to this article.

Sign up today to give your students the edge they need to achieve their best grades with subject expertise

Subscribe

Previous

Exam-style questions: Questions on income tax

Next

Fiscal policy: How can government intervene in food markets? And should it?

Related articles: