The chart shows three loops or circuits of economic interdependence, which are
described below. In addition there is a dependence loop between sectors through their
input-output linkages; this is not shown in the macro-level linkages in the figure but is
similar to a Type I multiplier. The second loop, through incomes and household
expenditure, provides something similar to Type II multipliers. The other loops are
through investment and through international trade.
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