Good evening Please help me with this question from my textbook. Refer to figure 1 which shows the income flows(Rm) in the economic circular flow model for a small economy. Q.2.1.4 Identify two injection flows that are illustrated in this flow diagram.Q.2.1.5 From the information in Figure 1, identify whether this economy isexperiencing a budget deficit or a budget surplus. Support your answerwith information from the model. Figure 1FIRMS400m120m80m 100moomR90mGOVERNMENTFINANCIALFOREIGNSECTORSECTOR50msom220m100mHOUSEHOLDS

Injections are such variables that add to the circular flow of income.

Answered: Q.2.1.4 Identify two injection flows…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Q.2.1.4 Identify two injection flows that are illustrated in this flow diagram. Q.2.1.5 From the information in Figure 1, identify whether this economy is experiencing a budget deficit or a budget surplus. Support your answer with information from the model.