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The following table shows various elements in a country's circular flow of income (where government ...

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The following table shows various elements in a country's circular flow of income (where government ...

The following table shows various elements in a country's circular flow of income (where government expenditure and investment include only the amount spent in the domestic economy: i.e. excluding any imported component).

Flows in the economy	(£m)
Saving	400
Consumption of domestic goods and service	1650
Government expenditure	1000
Income tax revenue	850
Indirect tax revenue	575
Import expenditure	700
Export expenditure	850
Investment	675

What will happen to national income?

▸ Stay the same

▸ Rise

▸ Fall

▸ It is impossible to say without further information.

Textbook

Essential Economics for Business

Edition: 5^th

Authors: Sloman, Jones

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