Economics A-Level
Circular flow
What Circular flow means in Economics A-Level, as defined for AQA.
Definition of Circular flow
Check what you remember
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Reference: AQA
The flow into which an initial change in expenditure occurs, leading to a disproportionately larger final impact on local or national income.
Topics that use Circular flow
- Aggregate demand and the level of economic activity (AQA A-Level)
Related terms
- Aggregate demand
- Circular flow of income
- Inflation
- Leakages and injections
- Marginal propensity to consume (MPC)
- Multiplier effect
- Multiplier process
- Marginal propensity to consume
Using Circular flow in the exam
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