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Related Questions
Which way does money flow in the circular flow?
From the product market to households.
What is circular flow model for an open economy?
it is a flow that shows the flow of money openly
What does the flow of money determine in the circular flow model?
The allocation of resources. :P
What does the flow money determined in the circular flow model?
The allocation of resources. :P
What is the driving force behind the circular flow of the market economy?
Money
What happens when leakages are greater than injections?
if leakages are greater than injection the circular flow will be in disequilibrium because more money is leaving the circular flow
What does gross domestic product measure in circular flow diagram?
flow of money, total income, total expenditure
What are the leakages from the circular flow?
You have leakages from your circular flow.
In the circular flow of goods and services what does the government use money payment to provide?
Goods and services
What is the role for consumers and producers in a free market system?
A circular flow model
What diagram shows the movement of goods and services and money from firms to households and from households to firms?
Circular flow
Why is circular flow model only a theory?
since there will be leakages from the circular flow
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