What students need to learn:
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Content
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Students should be able to:
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Additional Guidance Notes
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National income
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Understand that national income can be shown as a circular flow.
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Students might find it helpful to draw a simple diagram of the
circular flow of income.
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Income and wealth
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Understand the likely correlation between income and wealth.
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Wealth may be considered as a stock concept, while income is a flow.
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Injections and withdrawals
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Analyse the impact of injections and withdrawals on the circular
flow. For example, an increase in investment may increase the spending in an
economy as well as productive capacity.
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Students are not expected to have knowledge of the accelerator.
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