Circular Flow of Income Model Free Essay, Term Paper and Book Report
The Australian Economy is an intricate network of different segments interacting with one another in patterns or flows. To simplify the complexity of the situation, a Five Sector Model has been devised to help demonstrate more clearly the interactions of the five sectors- the Household sector, the Business sector, the Government sector, the Finance sector, and the Foreign sector. In this extended response essay, I will be giving a description of the Household sector and also be providing an in depth analysis of its relationship with the other sectors and evaluating the importance of its existence in the Australian Economy.
As already stated, the Household sector is one of five sectors in the Australian Economy. While the Business sector is one consumer of commodities, the Household sector is the primary consuming force within the economy. Because of this, householders ultimately decide what commodities and services are to be produced and in what quantities they will purchase this commodity or service- Consumer Soverenty. However, the Household Sector cant operate as a sole......
Word Count: 794
Page Count: 3.1 (250 words a page / double spaced)
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