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Exam (elaborations)

FAC1601 Assignment 3 Semester 1 2022

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FAC1601 Assignment 3 Semester 1 2022

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ECS1601 Assignment 3 Semester 1&
2 2021

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ECS1601
ASSIGNMENT 3 SEMESTER 1 2021
UNIQUE NUMBER: 789067
DISCLAIMER: Extreme care has been used to create this document, however the contents are provided “as is” without any
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PREVIEW OF QUESTION 1
1. 3 Reference: Prescribed book PG 277

Although production, income and spending all occur simultaneously, it is useful to consider these
three flows in sequence, starting with production. Production creates income which is then used to
purchase the products that were produced in the first place. By definition, income is always equal to
production but there is no guarantee that all income will be spent. Spending may be equal to, greater
than or less than income.
.




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