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real flow of economics activities

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What do the inner arrows of the circular flow model represents?

flow of money payments(Kaylop)Factor services ( From household to firms) &Goods & Services (From firms to households).[in a 2 sector economy)


What do the inner arrows of the circular flow model represent.?

flow of money payments(Kaylop)Factor services ( From household to firms) &Goods & Services (From firms to households).[in a 2 sector economy)


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Why is the circular flow model only a theory?

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