‘Circular Flow of Income’ – Define?

1.	‘Circular Flow of Income’ – Define?
Answer» 1. The circular flow of income is a model of an economy showing connections between different sectors of an economy. 2. It shows flows of income, goods and services and factors of production between economic agents such as firms, households, government and nations. 3. The circular flow analysis is the basis of national accounts and macroeconomics.

Answer»

1. The circular flow of income is a model of an economy showing connections between different sectors of an economy.

2. It shows flows of income, goods and services and factors of production between economic agents such as firms, households, government and nations.

3. The circular flow analysis is the basis of national accounts and macroeconomics.

Discussion