Question

why flow of income is called circular flow​

Answer 1

Answer:

The circular flow model demonstrates how money moves through society. Money flows from producers to workers as wages and flows back to producers as payment for products. In short, an economy is an endless circular flow of money. ... For that reason, the model is also referred to as the circular flow of income model.

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Answer 2

Answer:

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Explanation:

The circular flow model demonstrates how money moves through society. Money flows from producers to workers as wages and flows back to producers as payment for products. In short, an economy is an endless circular flow of money. ... For that reason, the model is also referred to as the circular flow of income model