Home/Literature/Russian Literature/Discuss the circular flow diagram and what you feel the government’s role should be in maintaining its balance. does the government have a role to play at all or should the government keep as much distance from the process as possible

Process Essay, 2 pages (350 words)

Discuss the circular flow diagram and what you feel the government's role should be in maintaining its balance. does the government have a role to play at all or should the government keep as much distance from the process as possible

Subjects: Literature, Russian Literature

Info

Published: September 18, 2022
Updated: September 18, 2022
University / College: University of Chicago
Level: Undergraduate
Language: English
Downloads: 18

The Circular Flow and the Role of Government The purpose of this paper is to study and analyze the Circular Flow of Income and Expenditures and what role government plays in maintaining its balance. Either it should get involved playing its role or it should stand aside and watch it from a distance.
According to the Circular Flow of Income and Expenditure, the economy is characterized into 5 key sections that are firms, households, government, financial markets, and the world. According to the flow chart, the payment is moved from one section to another. For example, firms pay their laborers against their service; those laborers then spend that money in goods and services that are manufactured by those firms. Gross Domestic Product (GDP) and Gross Domestic Income and Consumption are used to calculate this (McEachern).
Figure 1: (McEachern)
Governments are formed to help, guide, and lead the public and to provide them with the basic necessities. Therefore, households expect a lot from the government, which doubles their role in this regard. Keeping this scenario in mind, the role of the government is a crucial one, which should be focused on helping the people by solving their issues (McEachern).
It has been witnessed that households are also supposed to pay net taxes to the government while the government also increases the leakages in the circular flow by adding government expenditures (McEachern). The government leakage in the circular flow is the government expenditure or the government spending made by the government during a fiscal year which affects the overall circular flow. Thus, government has certainly failed in maintaining balance in the circular flow of income and expenditures. It is high time that the government must understand its role and act responsibly in this regard as it is getting difficult for households to maintain the flow effectively.
Work Cited
McEachern, William A. Microeconomics: A Contemporary Introduction. Mason: Cengage Learning, 2013. Print.

Thank's for Your Vote!

This work, titled "Discuss the circular flow diagram and what you feel the government’s role should be in maintaining its balance. does the government have a role to play at all or should the government keep as much distance from the process as possible" was written and willingly shared by a fellow student. This sample can be utilized as a research and reference resource to aid in the writing of your own work. Any use of the work that does not include an appropriate citation is banned.

If you are the owner of this work and don’t want it to be published on AssignBuster, request its removal.

Request Removal

Cite this Process Essay

References

AssignBuster. (2022) 'Discuss the circular flow diagram and what you feel the government's role should be in maintaining its balance. does the government have a role to play at all or should the government keep as much distance from the process as possible'. 18 September.

Reference

AssignBuster. (2022, September 18). Discuss the circular flow diagram and what you feel the government's role should be in maintaining its balance. does the government have a role to play at all or should the government keep as much distance from the process as possible. Retrieved from https://assignbuster.com/discuss-the-circular-flow-diagram-and-what-you-feel-the-governments-role-should-be-in-maintaining-its-balance-does-the-government-have-a-role-to-play-at-all-or-should-the-government-keep-as-much-dista/

References

AssignBuster. 2022. "Discuss the circular flow diagram and what you feel the government's role should be in maintaining its balance. does the government have a role to play at all or should the government keep as much distance from the process as possible." September 18, 2022. https://assignbuster.com/discuss-the-circular-flow-diagram-and-what-you-feel-the-governments-role-should-be-in-maintaining-its-balance-does-the-government-have-a-role-to-play-at-all-or-should-the-government-keep-as-much-dista/.

1. AssignBuster. "Discuss the circular flow diagram and what you feel the government's role should be in maintaining its balance. does the government have a role to play at all or should the government keep as much distance from the process as possible." September 18, 2022. https://assignbuster.com/discuss-the-circular-flow-diagram-and-what-you-feel-the-governments-role-should-be-in-maintaining-its-balance-does-the-government-have-a-role-to-play-at-all-or-should-the-government-keep-as-much-dista/.

Bibliography

AssignBuster. "Discuss the circular flow diagram and what you feel the government's role should be in maintaining its balance. does the government have a role to play at all or should the government keep as much distance from the process as possible." September 18, 2022. https://assignbuster.com/discuss-the-circular-flow-diagram-and-what-you-feel-the-governments-role-should-be-in-maintaining-its-balance-does-the-government-have-a-role-to-play-at-all-or-should-the-government-keep-as-much-dista/.

Work Cited

"Discuss the circular flow diagram and what you feel the government's role should be in maintaining its balance. does the government have a role to play at all or should the government keep as much distance from the process as possible." AssignBuster, 18 Sept. 2022, assignbuster.com/discuss-the-circular-flow-diagram-and-what-you-feel-the-governments-role-should-be-in-maintaining-its-balance-does-the-government-have-a-role-to-play-at-all-or-should-the-government-keep-as-much-dista/.

Get in Touch

Please, let us know if you have any ideas on improving Discuss the circular flow diagram and what you feel the government’s role should be in maintaining its balance. does the government have a role to play at all or should the government keep as much distance from the process as possible, or our service. We will be happy to hear what you think: [email protected]