Question

Explain the circular flow of income​

Answer 1

Answer:

Circular flow of income refers to the unending flows of production of goods and services, income and expenditure in an economy. It shows the redistribution of income in a circular manner between production units (firms) and households.

Explanation:

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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.

Explanation:

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