Question

Briefly explain the real flows and money flow of income

Answer 1

Explanation:

Money flow and real flow are the two main aspects of

circular flow of income economic model. Both refer to exchanges of goods and services for the money, but the two concepts different in how they refer to opposite side of these exchanges as they relate to individuals and companies.

Real flows refer to the flow of the actual goods or services, while money flows refer to the payments for the services ( wages, for example ) or consumption

payments .