Question

assumption of circular flow​

Answer 1

The Basic Circular Flow of Income Model builds on three major assumptions. (1) there are only two sectors, (2) there is no saving, and (3) there is no inventory. Each of those assumptions is explained in more detail below: The economy consists of exactly two sectors: households and firms.

Answer 2

Answer:

The Basic Circular Flow of Income Model builds on three major assumptions.

(1) there are only two sectors,

(2) there is no saving, and

(3) there is no inventory. The economy consists of exactly two sectors: households and firms.

Explanation:

Hope it will help you!!!!