"Since 2000, the Macro Islands have gained in tourist popularity. This is mainly due to the publicity the islands received over their one-of-a-kind millennium party, which was attended by important people from around the globe. Cruise lines now make the Macro Islands a port of call and thousands of tourists visit each month. The leader has asked that you explain how this increase in tourism has affected the circular flow of the economy." THE QUESTION:
1)Assume the Macro Islands have not developed an international sector for their economy.
a. Using the model provided in the lesson, draw (by hand) and label the circular flow for the islands' economy. Make sure to include all sectors.
b. Explain how money (increased commerce) spent by tourists in the Macro Islands moves through the economy's circular flow diagram (in fewer than 150 words). Make sure that each market and the government are included in your explanation.