Question

circular flow of economic activity

Answer 1

In the circular flow of the economy, money is used to purchase goods and services. ... Households also sell their labor, land, and capital in exchange for income that they use to buy goods and services that firms produce.

Answer 2

Explanation:

Basically circular flow of economic activity is a theory in economics which is first observed by JM Keynes.

He suggested that the money and goods in an economy move in a circle fashion chasing eachother indefinitely .