Question

explain the circular flow of income with extrnal sector in a three sector economy with the help of diagram​

Answer 1

Answer:

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Explanation:

Circular Flow of Income in a Three-Sector Economy:

Under three-sector economy, the additional sector is the government. ... In the above diagram, in one direction, the household sector is supplying factors of production to the factor market. Business sector demands the factors of production from factor market.