MACRO-ACTIVITY FLOWS

CIRCULATORY

Loop ? Spiral ?

or

or or

1
 REAL FLOW MODEL (1)

Nat. Res., Lab, Cap, & Ent.

Household Firm

Goods & Services

2
MONETARY FLOW LAISSEZ-FAIRE MODEL (2)

(Rent, Wages, Interest & Profit) = Prod. Exp.

Nat. Res., Lab, Cap, & Ent.

Household Firm
Goods & Services

ts
en
Consumption Exp.

stm
ve
In
Financial Institutions

3
 MONETARY FLOW NON-LAISSEZ-FAIRE MODEL (3)
Autarky = Closed Economy GDP = C + I + G
Rent, Wages, Interest & Profit

Nat. Res., Lab, Cap, & Ent.

A B
Household Govt. Firm
D C
Goods F
& Ser
vices
Con
. Ex p
.
Sav ts
in gs en
stm
E ve
In
Fin. Institutions

4
 NON-LAISSEZ-FAIRE MODEL
FINANCIAL and / or MONETARY FLOW
(4)
GNP = GDP + [(X - M) + (R - P)]
OPEN ECONOMY M
rof it Foreign
e re s t&P Sector
, In t
age s K
nt , W G
Re I
Nat. Res., Lab, Cap, & Ent.

N H
A B L
Household Govt. Firm
D C
F
Goods
& Ser
vices
Con.
Sa Exp . ts
vin n
gs
E J tm
e
e s
nv
I
Fin. Institutions
 Are the Macro-Activity Flows

Loop ?

Circulatory ?

Spiral ?
or or or or

6
Shared by Sahiban Crasto SXC (A) - M, SYBA A (2017-18)