What is Circular Flow of Income? The circular flow means the unending flow of production of goods and services, income, and expenditure in an economy. It shows the redistribution of income in a circular manner between the production unit and households.
Oct 22, 2020
Circular flow of income
The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. between economic agents. The flows of money and goods exchanged in a closed circuit... Wikipedia
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The circular flow model is a simple tool for learning about the economy. It shows the relationship between households and businesses and how these different ...
Taxation (T) – money paid to the Government The circular flow model describes the flow of money and goods and services between different sectors of the economy ...
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