Question

basic principles of circuler flow of income?in easy language.​

Answer 1

The circular flow of income involves two basic principles:

The circular flow of income involves two basic principles:(i) In any exchange process, the seller (or producer) receives the same amount which the buyer (or consumer) spends. ... Thus, product flow from the seller to the buyer is necessarily a complement of money (income) flow from the buyer to the seller.

Answer 2

Explanation:

The circular flow of income involves two basic principles:

The circular flow of income involves two basic principles:(ii) Goods and services flow in one direction and the money payment to acquire them, flow in the return direction giving rise to a circular flow.