What is the circular flow model?
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Principles of Macroeconomics
Trace through the circular flow model in Chapter 6. What is the point of the circular flow model, what are some leakages and injections into the circular flow model, and how are the leakages and injections related to the circular flow?
Answer the following questions:
(1) Which two sectors of the economy are represented in the circular flow model? Which two markets are shown in the circular flow model?
(2) The circular flow model includes two circles and those circles flow in opposite directions. What do those circles represent?
What is circular flow model economics?