Microeconomics 20th Edition by Campbell McConnell, Stanley Brue,Sean Flynn

Exercise 1

Use a circular flow diagram to show how the allocation of resources and the distribution of income are affected by each of the following government actions.
a. The construction of a new high school.
b. A 2-percentage-point reduction of the corporate income tax.
c. An expansion of preschool programs for disadvantaged children.
d. The levying of an excise tax on polluters.