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Resource circulation in the macroeconomic loops

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This flow-chart diagram illustrates how governments, households, corporations and international entities interact in 3 major markets to run the economy as a whole: workforce market, financial market and commodity market.

Resource circulation in the macroeconomic loop

Legends of the flows:

  • L stands for Labor.
  • W can be used to stand for Wage.
  • T stands for Tax.
  • Tr stands for Transfer payments.
  • G stands for Government expenditures.
  • S stands for Savings made available in financial markets for investment.
  • I stands for Investment from financial markets.
  • IM stands for Import from foreign economies.
  • X stands for eXport to foreign economies.
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