Question

What is circular flow of income?

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.

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Answer 2

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.