Question

5. Explain the circular flow of income
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Answer 1

Answer:-

This answer is fully correct you can write this answer

Answer 2

The circular flow of income refers to the never-ending flow of income in an economy.

Explanation:

• The circular flow of income can be defined as a process where the process of income generation starts in the economy and is consumed in the economy.
• It is based on the fact that the flow of income is never-ending and will continue to exist till the human race exists on the earth.
• The income earned by one person is spent in the market which becomes the income of another person and this flow continues.