Role that play in the circular flow of economic activity
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In the circular flow of the economy, money is used to purchase goods and services. ... Households also sell their labor, land, and capital in exchange for income that they use to buy goods and services that firms produce. Businesses sell goods and services to households, earning revenue and generating profits.
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In the circular flow of the economy, money is used to purchase goods and services. Goods and services flow through the economy in one direction while money flows in the opposite direction. ... People in households buy goods and services from businesses in an attempt to satisfy their unlimited needs and wants.
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