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Circular Flow Of Income Model Beginning of Paper The demonstrates the important relationships between sectors in the Australian economy. It can also be useful for understanding and explaining current conditions of these sections. It is a useful tool in evaluating the government budget and areas of spending to keep the economy stab .... Middle of Paper .... of the community. The government sector fits into the circular flow as a receiber and spender of income. It providescollective goods and services, such as defence, schools, hospitals and flood mitagation programs.The final sector of the circular flow model is the foreign sector. The foreign sector represents another set of leakages and injections in the circular flow and, therefore, another opportunity for loss of equilibrium. The current state of the household sector is in a slight slump. The household sector is reluctant to buy goods at the .... 867 words | 4 pages Subscription Length Price Join 30 days membership (recurring) $19.95 90 days membership (recurring) $39.95 180 days membership (non-recurring) $69.95