Circular Flow of Income
A certain portion of the company’s profits is given to the government in the form of taxes. Apple may benefit from government programs or subsidies in some cases so part of these tax dollars may indirectly benefit the company. It would lead to a reduction in household spending and cause a decrease in GDP if businesses decided to produce less.
Limitations of a Circular Flow DiagramThey want to hang on to their funds because they are unsure whether they can continue to earn the same level of income. I’ve also written about how the Circular Flow of Income Model helps us understand economic growth. Vaia is a globally recognized educational technology company,