Question

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*I NEED A LEGIT ANSWER*
*NO RANDOM ANSWERS*

What role does government play in the circular flow model?

~Thanks~

Answer 1

The government also manages the role of keeping everything equal with checks and balances. Checks and balances make sure that not one branch of government becomes too powerful and it also prevents the President from creating a tyranny. Tyranny is when a someone has complete control over any and everything.

Answer 2

Governments levy taxes on households and businesses in order to provide certain benefits to everyone. In the circular flow model, injections into the economy include investment, government purchases, and exports while leakages include savings, taxes, and imports.