123 School Work

Macroeconomics Circular Flow

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  The increase in tourism on the Macro Islands has brought about a drastic change in the circular flow of the islands. To begin, When the government receives more money from tourists that increases the governments consumption of goods. This consumption leads to investment government spending and also importing goods from other countries. This increase in spending from tourists results in; government spending in schools and other public places, a more desirable location for investors, and more money to import goods.
       To start, government spending goes directly into the economy's circular flow stated previously. One example of government spending is education. Schools will receive more money for supplies like books, desks and computers. The government will have the ability to hire a greater amount of qualified teachers as well. Also, tourism will increase the governments funding for national defense programs like the military and army, increasing the defense for the country. Last, building more services like libraries, fire and police stations and hospitals will increase the demand for people to relocate to the Macro Islands...