In the textbook, there are two circular flow diagrams: One that represents the flows in the macro-economy as a closed system and one that represents the flows as an open system. Review the diagrams and write a three to five page length paper that:
Defines and explains a closed system and provides an example.
Explains the inner and outer flows of a closed system.
Defines and explains leakages in an open system.
Provides a personal example of a leakage, describes it and explains it.