Circular Flow of Income

The Circular Flow of Income Model

The Circular Flow of Income Model is used to show students the key relationships of income, expenditure and production in the economy.

Money, goods and services move through the sectors of the economy because of income, expenditure and production flows.

Diagrammatically it is easy for students to see this in a model so the relationships are better understood.

what is the circular flow of income?

Now learn more about this macroeconomics topic by accessing our free resources and low cost business tutorials.

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Apr'18

Introductory Macroeconomics Questions and Answers

These introductory macroeconomics questions and answers will direct you to more resources to help in your study of macroeconomics. Introductory Macroeconomics Questions and Answers Hopefully these introductory macroeconomics questions and answers have helped you understand this important topic.

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09

Apr'18

What is the Circular Flow of Income Model?

What is the Circular Flow of Income Model? The Circular Flow of Income Model is often used to show the key macroeconomic relationships of income, expenditure and production are derived. The model illustrates how income, expenditure and the physical goods and services flow around the economy. The model in its …

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