EconGuru Economics Guide RSS Syndication

Submit a Guest Post on!

© Copyright 2006 - 2011 All rights reserved. Assets marked and linked to the original sources are hereby used for educational purposes only and are copyrighted by their respective owners.

Subscribe to EconGuru.

Resource circulation in the macroeconomic loops

Subscribe to EconGuru:

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.
Share This Article:
Meet the Author


EconGuru Economics Guide

Educating the public since 2006.

As an Amazon Associate, EconGuru earns from qualifying purchases.