The Circular Flow diagram represents the flows of money and of goods and services in the economy.

This task is a REPORT which involves separate sections under sub-headings. It can include a table of contents, relevant graphs and images from approved reference sources listed below. It does not typically include a thesis statement. It must have an introduction and a conclusion paragraph that are consistent with Task 1 and Task 2 topics.
• The report should clearly explain and discuss the majority of the key topics from Lecture 2 and their corresponding explanations in Chapter 2 of Essentials of Economics (Krugman & Wells, 2020).
• The two task should use the key lecture and chapter topics to explain the circular flow diagram using researched real-world examples from the UK economy and chosen case study country between 2021-2023.
• The report should discuss the circular flow diagram by using both MOD3327 module content and real-world examples in each task from the UK market and chosen case study economy between 2021-2023.

Task 1: 45/100 – Approximately 800 to 1,000 words

Using the Circular Flow Diagram model from Krugman & Wells (2020: p. 106) and relevant concepts from Krugman & Wells (2020), explain and analyse at least one specific UK event or situation in the UK economy in the past three years (2021- 2023) and how it impacted the UK economy positively or negatively, supported with approved reference sources. This may be related to labour issues or supply chain (both part of the factor markets), household financial difficulties, companies’ (firms) difficulties in the markets. The UK news sources provide information on these UK topics on a daily basis and you are required to do research on UK news sources for this task.
Task 2: 45/100 – Approximately 800 to 1,000 words
Use the terminology from Chapter 2 to explain how the Circular Flow Diagram model from Krugman & Wells (2020: p. 106), applies to real-world economic events between the UK and another country of your choice (2021-2023), supported with citations from approved reference sources only. Give at least two real-world example from 2021-2023 to describe where the events would be located in the Circular Flow Diagram and explain how it has impacted or could impact other areas of the Circular Flow Diagram of the UK and chosen country’s economy.
Referencing: 10/100 marks
Correct Harvard style referencing, clear formatting (including spelling, punctuation), and effective communication.
Total marks available: 100
Do NOT use any external sources that are not on this list .
(*required reading):
*Krugman and Wells. 2020. Essentials of Economics: Chapter 2. New York: Worth Publishers.
*Young, M. 2022 Lecture 2. MOD3327 Economics for Business
UK & international news sources:
BBC News, The Guardian newspaper, Financial Times newspaper, London Evening Standard,
The Economist, The Independent, and *reputable major national online & print news
sources from non-UK countries (*for task 2 only)
UK & international government information sources:
UK Office of National Statistics (ONS)
UK official government websites ending in “gov.uk” or “parliament.uk” International government organisation websites (UN, World Bank, IMF, OECD, WTO, EU, AU,
ECOWAS, etc.)
*Non-UK country official government websites (*for task 2 only) 

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