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They create incomes for the domestic firms. The Paradox of Thrift or paradox of savings is an economic theory which posits that personal savings are a net drag on the economy during a recession. Circular Flow Of Income In Four Sector Economy Circular Flow Of Income Income Goods And Services Exports are an injection or inflows into the economy. . So in a three-sector model there are two injections I and G and two leakages S and T. The circular flow model in a four-sector open economy has been shown in Fig. A π Diameter 2 4. Likewise people of other countries purchase goods and services. In this model the speed of resource depletion and waste generation could be reduced Lieder and Rashid 2016 and incremental improvements can be delivered Ghisellini et al 2016. This circular flow of income also shows the three different ways that National Income is calculated. Common approaches are outlined below. Profit divi...

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