write down the concept of circular flow of money in case of 3 sector economy.
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Circular flow of income is an economic model that describes how the money exchanged in the process of production, distribution and consumption of goods and services flows in a circular manner from producers to consumers and back to the producers.
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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. The circular flow analysis is the basis of national accounts and hence of macroeconomics.
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