Five Sector Circular Flow of Income The five sector circular flow of income shows the distribution of income within the economy. It has five main subsidiaries or contributors, including individuals, businesses, financial institutions, the government and international trade and financial flow. Each of these sectors contribute to either the leakages or injections (or both) of the circular flow of income. Individuals, refers to all members of the economy, regardless of employment or financial status. They …showed first 75 words of 754 total…

…showed last 75 words of 754 total…are seen as injections as Australian goods and services are sold to other nations. This brings in money from overseas and stimulates production and employment opportunities in Australia. The five sector circular flow of income displays the flow of income through the economy. It shows how each of the sectors interact with and utilise money and its effect on the flow of income. It is a simplified model of the financial flows within an economy.