Question

Descriebe Pasinete's theory
theory of
economic growth
and
distribution ​

Answer 1

Answer:

The circular flow is a stream that is fed from the continually flowing springs of labour power and land and flow in every economic period into the reservoir which we call income, in order to be transformed into satisfaction of wants”.

The main features of circular flow are as under:

Explanation:

(a) All economic activities are essentially repetitive and follow a familiar routine course.

(b) The economic system has the optimum level of output and its maximum use and there is no possibility of wastage of resources.

(c) The firms working in a system are in a state of competitive equilibrium.