Question

explain circular flow of income three sectors model

Answer 1

circular flow of income can be explained as follows.


1: household sector

2: production sector
3: foreign sector

Answer 2

Answer:

The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. between economic agents. The flows of money and goods exchanged in a closed circuit correspond in value, but run in the opposite direction.