The Statements Below Refer to the Circular Flow of Income

question 7

Short Answer

The statements below refer to the circular flow of income at the current point in time. Correctly match the following pairs.
(a) Firms pay households for the supply of their inputs.
(b) There is a legal requirement that workers put more money in the superannuation funds.
(c) Company taxes increase.

(i) neither a net injection nor a net withdrawal
(ii) a net injection
(iii) a net withdrawal

---

Definitions:

Claude McKay

A Jamaican writer and poet who was a seminal figure in the Harlem Renaissance, a significant literary movement in the 1920s among African Americans.

Slumming

The practice of visiting poorer urban areas for the purpose of entertainment or voyeurism by those from higher socioeconomic classes.

Jazz Clubs

Venues dedicated to the performance and enjoyment of jazz music, often featuring live bands and a vibrant atmosphere.

Ku Klux Klan

A white supremacist group originating in the southern United States post-Civil War, known for promoting racism, anti-Semitism, and violence against minority groups.