With reference to an Injections and Withdrawals diagram. If this diagram is illustrating a Recessionary Gap. Using Macroeconomic terms explain what this diagram is outlining and what measures a Government may take to correct this economic situation, and why Government may take these actions. You may wish to include a brief analysis relating to current macroeconomic issues

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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With reference to an Injections and Withdrawals diagram. If this diagram is illustrating a Recessionary Gap.

Using Macroeconomic terms explain what this diagram is outlining and what measures a Government may take to correct this economic situation, and why Government may take these actions. You may wish to include a brief analysis relating to current macroeconomic issues

The circular flow of income
INJECTIONS
Export
expenditure (X)
Nnvestment ()
Government
expenditure (G)
Consumption of
domestically
produced goods
and services (C.)
Factor
BANKS, etc
ABROAD
GOV.
payments
Import
expenditure (M)
Net
Nết
saving (S ates (7)
WITHDRAWALS
Transcribed Image Text:The circular flow of income INJECTIONS Export expenditure (X) Nnvestment () Government expenditure (G) Consumption of domestically produced goods and services (C.) Factor BANKS, etc ABROAD GOV. payments Import expenditure (M) Net Nết saving (S ates (7) WITHDRAWALS
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