1. What are the four basic macro markets in the economy? 2. What is meant by the circular flow of income? 3. What is a withdrawal/leakage? 4. What is an injection? 5. What is the link between injections and withdrawals? 6. Explain the circular flow diagram. 7. The following data represents flows in an economy: PARTICULARS Saving Consumption of domestic goods Income Tax revenue Indirect Tax revenue Import expenditure Export expenditure Government expenditure Investment (where government expenditure and investment includes only the amount spent in the domestic economy, that is exclude any imported component) Based on the above data, calculate the level of withdrawals from the circular flow. Businesses Product markets Arrow A Arrow B Arrow C Arrow D MILLIONS OF DOLLARS 200 1,550 750 475 600 850 900 575 Factor markets Households 8. Refer to the above figure. The top two arrows of the figure refer to the product markets. The bottom arrows refer to the factor markets. Which arrow represents the total monetary value