Beginning of Essay
The demonstrates the important relationships between sectors in the Australian economy. It can also be useful for understanding and explaining current conditions of these sections. It is a useful tool in evaluating the government budget and areas of spending to k ....

Middle of Essay
.... The government sector fits into the circular flow as a receiber and spender of income. It providescollective goods and services, such as defence, schools, hospitals and flood mitagation programs.The final sector of the circular flow model is the foreign sector. The foreign sector represents another set of leakages and injections in the circular flow and, therefore, another opportunity for loss of equilibrium. The current state of the household sector is in a slight slump. The household sector is reluctant to buy goods at the cirrent point in time. The income they are recieving is lower than what it has been, which would explain the drop in consumpt ....