Economists use a circular flow model to highlight basic fetures of a market economy. The model shows how voluntary exchange between households and businesses answer the economy's "who" "how" and for whom questions and create a nexessary flow of money products and resources to help satisy wants.
The flow of goods and the flow of services.
explain with the help of diagram circular flow of income model in a four sector economy?
Counterclockwise and revenues flow counterclockwise.
flow of money, total income, total expenditure
Make consumption expenditures and receive goods and services.
The flow of goods and the flow of services.
explain with the help of diagram circular flow of income model in a four sector economy?
Counterclockwise and revenues flow counterclockwise.
Total expidenture should equal total income
flow of money, total income, total expenditure
Make consumption expenditures and receive goods and services.
Total expidenture should equal total income
Circular flow
all the exchanges of goods && services
all the exchanges of goods && services
The circular flow model of the economy is a conceptualization of the basic flows of income and spending in the economy during a given period of time. It is usually depicted on a diagram, which can be viewed at the Related Link.
You have leakages from your circular flow.