Question

What are examples of withdrawals from the circular flow of income? Check all that apply. A sharp increase in taxes affects many middle-class families. A sports-apparel company cuts jobs as a result of slow sales. A fast-food chain goes out of business and shuts down all of its restaurants. Most of the stores at a mall are promoting sales to encourage new customers. Crew members are hired for a movie company that is shooting on location.
ANSWER: 1,2,3 !!!

Answer 1

A sharp increase in taxes affects many middle-class families.

A sports-apparel company cuts jobs as a result of slow sales.

A fast-food chain goes out of business and shuts down all of its restaurants.

Explanation:

The circular income or circulated flow is a model for the economy where the big transactions between the market participants are represented as cash flows, goods and services, etc. The cash and goods flows transferred in a closed circuit complement the interest but are going in the reverse direction.

Retirements are factors in an economy that escapes from distributed labor flows and reduces national income sizes.

Withdrawals include: savings, taxes and imports.

Answer 2

Answer:

A. A sharp increase in taxes affects many middle-class families.

B. A sports-apparel company cuts jobs as a result of slow sales.

C. A fast-food chain goes out of business and shuts down all of its restaurants.