Circular Flow Model | Definition & Examples
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Circular Flow Model | Definition & Examples
546K viewsFeb 9, 2016
Study.comBrianna Whiting
The circular-flow modelThe following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs.Markets forGoods and ServicesFirmsHouseholdsMarkets forFactors of Production
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