For the requirements of this assignment,
you are required to:
Critically analyze the importance of the Circular Flow model and use it to explain why
the Gross
Domestic Product (GDP) equals Aggregate Expenditure (AE) and Aggregate Income (AI).
Your assignment must be comprised of the following sections:
• Cover page and table of contents.
• Introduction
• Main body of the report (essay content, graphs for each of the above points indicating the new
situation and review of literature. All the elements that are included in the report must be
adequately analyzed and supported with material that is properly cited,
paraphrased and
referenced from a wide variety of external sources).
• Conclusions (bring together your main points, address the main points as indicated above
and adequately summarize the findings of your
The total number of words for this assignment should be 1500 words (+/- 10%). This does not
include the graphs, reference list and any appendices the report may include.

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