Question

name one primary economic participant in the domestic circular flow of income and Spending

Answer 1

The Circular flow of income and Spending

The circular flow of income and Spending is a framework used by economists to show how money flows among the different sectors of the economy.

- Mainly money flows between the firms and the household.

- The circular flow of income helps to calculate the national income or Gross Domestic Product.

Domestic circular flow of income and Spending

It denotes the flow of income within the country and includes household, firms, and the government.

The primary economic participants in the domestic circular flow of income and Spending are

1. Household,

2. Firms, and

3. The government.

Hope this helps.

Answer 2

The domestic circular flow of income and spending refers to the income flow within a country including the households, firms and government.

It is a framework which is used by the economists in order to show the money flow among different sectors present in the economy.

It helps in calculation of national income.

One primary economic participant in the domestic circular flow of income and spending is the government.