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a circular flow diagram represents how goods, services, and money move through our economy. there are two major actors known as households and firms. firms offer goods and services for households to consume. they also offer incomes to the households. a circular flow diagram represents how goods, services, and money move through our economy. there are two major actors known as households and firms. firms offer goods and services for households to consume. they also offer incomes to the households. the circular-flow diagram (or circular-flow model) is a graphical representation of the flows of goods and money between two distinct parts of the economy: -market for factors of production (such as labour or capital), where firms purchase factors of production from households in – – visit- , to know more about our latest product- economics lab! – – this video lesson is on the circular flow diagram, which describes the circular flow of money this basic circular flow of income model consists of six assumptions: the economy consists of two sectors: households and firms. households spend all of their income (y) on goods and services or consumption (c). in the sixth episode of the economic lowdown video series, economic education specialist scott wolla explains the circular flow model. economic model #1: the circular-flow diagram one model that helps explain how a market economy works is a circular-flow diagram. – understanding the flow of resources in the simplest possible economy., circular flow diagram microeconomics, circular flow diagram with government, circular flow diagram maker, circular flow diagram template , circular flow diagram template, circular flow diagram with government and foreign sector, circular flow diagram definition, circular flow model real life examples, circular flow diagram example , circular flow diagram example
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