IB skill practice

Explain macroeconomic objectives and circular flow

Economics SL skill with original exam-style diagram, data-response, and evaluation seeds.

Paper 1, Paper 2 5 marks Difficulty 4

Explain leakages and injections

A circular flow extract in a Wellington public policy debate says saving, taxation, and imports reduce spending flow, while investment, government spending, and exports add spending. Explain leakages and injections. Enter the answer and choose the interpretation that best matches the economic evidence.

Worked practice: economic evidence and answer

Identify the economic evidence first, then state the result and interpretation.