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In the textbook, there are two circular flow diagrams: One that represents the flows in the macro-economy as a closed system and one that represents the flows as an open system. Review the diagrams and write a three to five page length paper that:

  • Defines and explains a closed system and provides an example.
  • Defines and explains an open system and provides an example.
  • Explains the inner and outer flows of a closed system.
  • Explains the inner and outer flows of an open system.
  • Defines and explains leakages in an open system.
  • Defines and explains injections in an open system.
  • Provides a personal example of a leakage, describes it and explains it.
  • Provides a personal example of an injection, describes it and explains it.

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.

 

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