Question

what does three sector economy does not include​

Answer 1

The three-sector economy involves three sectors namely, households, business, and government. The addition of the government in an economy results in bringing two variables in an economy. These variables are government expenditure (act as injections to income) and taxation (act as leakage or withdrawals from income).

Answer 2

$\sf{Answer}$

• The three-sector economy involves three sectors namely, households, business, and government. The addition of the government in an economy results in bringing two variables in an economy. These variables are government expenditure (act as injections to income) and taxation (act as leakage or withdrawals from income).

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