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ECONOMICS

MACROECONOMICS AND THE CIRCULAR FLOW MODEL


Goals:
Consumers:

Increased utility / satisfaction

Businesses:

Increased profit; increased equity value;


increased market share

Financial Institutions: Increased profit;


Increased equity value;
Increased market share
Government:

Economic Growth

Low (Full) Unemployment


Stable prices (Low Inflation)
Balanced Budget
Balanced / Stable Balance of Payments
Provision of Public & Merit Goods
Limit / Reduce externalities

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