A-LevelEconomicsThe macroeconomy9708/12 · May/June 2025 · Q171 Mark
Based on the circular flow of income, which condition is necessary for an open economy to be in equilibrium?
AGovernment investment is equal to private investment.
BPlanned injections are equal to planned withdrawals.
CSpending by households is equal to taxes collected by government.
DValue of export earnings is equal to expenditure on imports.
✓ Correct answer
B: Planned injections are equal to planned withdrawals.
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