Question

Explain the circular flow of income in the closed and open economy model

Answer 1

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.

Answer 2

Explanation:

the circular flow of income in the closed and Open Economy model