2.4.2

Question 1

Injection

Answer 1

An injection into the circular flow of income is money which enters the economy

This is in the form of government spending, investment and exports

Question 2

Withdrawal

Answer 2

A withdrawal from the circular flow of income is money which leaves the economy
Taxes, saving, imports

Question 3

Net injections

Answer 3

Expansion of national output

Question 4

Net withdrawals

Answer 4

Contraction of production so output decreases