Firms
A circular flow model
mutual circulation of income between producers and consumers
The circular flow refers to a simple economic model which describes the reciprocal circulation of income between the consumers and producers. Thanks
Wages
Wages
A circular flow model
mutual circulation of income between producers and consumers
The circular flow refers to a simple economic model which describes the reciprocal circulation of income between the consumers and producers. Thanks
Wages
WagesApex approved
Wages
Consumers and producers influence each other in a circular fashion.
Consumers to buy
Purchase goods and services
wages APEX
Purchase goods and services
The movement of income from producers of goods and services to consumers, and back to the producer is known as the circular flow. Circular flow is generally shown in a circular flow chart or model.