5 sector model/business cycle ...economics (1 Viewer)

[risole91]

Does anyone have notes on the:

-5 Sector Circular flow model
-Business Cycle

my teacher said we did it during our prelims, but i joined eco mid way last year.

so i have no idea on those two.
any help would be awesome, thanks.

 

[risole91]

THANKS HEAPS!
this will help alot.

 

[bikapika]

just a funny question in relation to the 5 sector model: assume that
1.) t + s = g + i
2.) the economy has a floating currency


in this case, theorically if m>x, the economy is supose to contract while if m<x, the economy will expand.

now, if u take into account of the balance of payments, then any leakages of money due to m>x will be compensated by an equivalent amount of cash inflow from the capital and financial accounts. then:

m = x + k inflow ? (not sure about the symbol for capital and financial accounts)

therefore, an economy operating under floating exchange rate will not become disequilibrium??????

please tell me im wrong

 

[risole91]

m = x + k inflow ? (not sure about the symbol for capital and financial accounts)

therefore, an economy operating under floating exchange rate will not become disequilibrium??????

please tell me im wrong

thats a good point, i think.
if i fully understand what your saying.what made you think of that?

 

[bikapika]

u will love economics in year12

i thought of it while i was doing naughty stuff with naughy ppl