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Income Expenditure Diagram economicsconcepts inflationary and deflationary gaps htmInflationary and Deflationary Gaps J M Keynes in his famous book General Theory put forward an analysis of unemployment and inflation The Keynesian theory assumes that a maximum level of national output can be obtained at Income Expenditure Diagram yourarticlelibrary policies effectiveness of monetary and The government also influences investment employment output and income in the economy through fiscal policy For an expansionary fiscal policy the gov ernment increases its expenditure or and reduces taxes economicsonline uk Managing the economy Investment htmlInvestment spending Investment spending is an injection into the circular flow of income Firms invest for two primary reasons Firstly investment may be required to replace worn out or failing machinery equipment or buildings Income Expenditure Diagram biogas renewable energy biogas diagram htmlDiagram of an installation of anaer...