Circular income flows

Circular income flows

Bachelor of Business Studies (BBS) — Second Year

Subject: Macroeconomics for Business (MGT 209)

Unit 2: National Income Accounting

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of circular income flows.
• Explain the economic model or issue, identify its assumptions and interpret the relevant diagrams, calculations or dated evidence.

Curriculum Scope

• Two-sector economy
• Three-sector economy
• Four-sector economy

Detailed Microsyllabus

1. Two-sector flow

   1. Households, firms and factor payments.
   2. Goods, services and consumption spending.
   3. Real flows versus monetary flows.

2. Extended circular flows

   1. Government spending, taxation and three-sector flows.
   2. Exports, imports and four-sector flows.
   3. Leakages, injections and income-flow consistency.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 24-26.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Nepalese current-status discussions should identify the reporting period and use dated official publications, such as Nepal Rastra Bank reports, rather than undated figures.