Match the following: 1. Sheena w

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Match the following:

1.	Sheena who lives in Mandana's house and pays rent	A.	Real flow
2.	Fridge purchased by Priyanshu	B.	Contraction
3.	Injection	C.	Money flow
4.	Leakage	D.	Expansion

Options:

1-A, 2-C, 3-D, 4-B

1-C, 2-A, 3-B, 4-D

1-B, 2-A, 3-D, 4-C

1-C, 2-A, 3-D, 4-B

Correct Answer:

1-C, 2-A, 3-D, 4-B

Explanation:

Real flow: It is the flow of goods and services across different sectors of the economy. Fridge purchased by Priyanshu is an example of real flow
Money flow: It involves the flow pf factor payments and payments of goods and services. Sheena who lives in Mandana's house and pays rent is an example of money flow.
Expansion of circular flow implied "Injection" into it.
Contraction implies "leakages" from the circular flow.