Question

6. Explain circular flow of income in two sector economy without saving. ​

Answer 1

$\Large {\textsf{\textbf \red{Hello! Oppa!,}}}$

There is a circular flow of income in between two sectors – household sector and firm sector. This circular flow of money will continue indefinitely. In this way the economy functions. But, it is a fact that this flow of money income will not always be same.