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WELCOME
TO
OUR PRESENTATION
GROUP MEMBERS
Taibul Islam (2013-3-10-020)
Sultan Md. Ishraq (2013-1-14-046)
Rezwana Manzur Naoumi (2014-1-30-030)
Aklima Akter Prema (2013-2-10-093)
CIRCULAR DIAGRAM OF A NATIONS’ INCOME
Introduction
Measuring a nation’s income
Gross national product (GDP)
What is counted in GDP
What is not counted in GDP
CIRCULAR FLOW DIAGRAM FOR 2 SECTOR MODEL
So the equation for the 2 sector model is:
[Y= GDP; I= Investment; C= Consumption; S=
Saving]
i) Y= C ;(for poor people only)
ii)Y= C+I = C+S
S=I ;(when financial systems like banks come
to allocate the monetaryflow)
CIRCULAR FLOW DIAGRAM FOR 3 SECTOR MODEL
So, our equation for 3 sector model is,
Y=C+I+G
(G= Government purchases)
This equation named goal of Government.
CIRCULAR FLOW DIAGRAM FOR 4 SECTOR MODEL
So the equation for 4 sector
model:
Y= C+I+G+NX
(NX= EXPORT – IMPORT)
QUESTION / SUGGESTION
THANK YOU ALL

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Circular diagram of a nation's income

  • 2. GROUP MEMBERS Taibul Islam (2013-3-10-020) Sultan Md. Ishraq (2013-1-14-046) Rezwana Manzur Naoumi (2014-1-30-030) Aklima Akter Prema (2013-2-10-093)
  • 3. CIRCULAR DIAGRAM OF A NATIONS’ INCOME Introduction Measuring a nation’s income Gross national product (GDP) What is counted in GDP What is not counted in GDP
  • 4. CIRCULAR FLOW DIAGRAM FOR 2 SECTOR MODEL So the equation for the 2 sector model is: [Y= GDP; I= Investment; C= Consumption; S= Saving] i) Y= C ;(for poor people only) ii)Y= C+I = C+S S=I ;(when financial systems like banks come to allocate the monetaryflow)
  • 5. CIRCULAR FLOW DIAGRAM FOR 3 SECTOR MODEL So, our equation for 3 sector model is, Y=C+I+G (G= Government purchases) This equation named goal of Government.
  • 6. CIRCULAR FLOW DIAGRAM FOR 4 SECTOR MODEL So the equation for 4 sector model: Y= C+I+G+NX (NX= EXPORT – IMPORT)