Part one of term paper
The demonstrates the important relationships between sectors in the Australian economy. It can also be useful for understanding and explaining current conditions of these sections. It is a useful tool in evaluating the government budget and areas of spending to keep the economy stable. The is made up of five sectors. These include the house ...

Part two of term paper
... productive units in the economy, most production of goods and services is in the hands of private firms motivated by the desire to maximise their profits. The financial sector comprises mainly banks and the centeral bank which are responsible for issueing notes and coins, controlling the supply of money, and providing day-to-day requirements of the community. The government sector fits into the circular flow as a receiber and spender of income. It providescollective goods and services, such as defe ...