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explain with the help of diagram circular flow of income model in a four sector economy?
product market
real flow of economics activities
Businesses are sellers of products.
Allow Financial sector to hold savings. Pay tax (direct & indirect) to the Government. Spend on consumption, which goes to Producers. Provide factors of production / resources to Producers.
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explain with the help of diagram circular flow of income model in a four sector economy?
product market
real flow of economics activities
Businesses are sellers of products.
Allow Financial sector to hold savings. Pay tax (direct & indirect) to the Government. Spend on consumption, which goes to Producers. Provide factors of production / resources to Producers.
The economy is no longer closed and all other assumptions hold.
You have leakages from your circular flow.
flow of money payments(Kaylop)Factor services ( From household to firms) &Goods & Services (From firms to households).[in a 2 sector economy)
flow of money payments(Kaylop)Factor services ( From household to firms) &Goods & Services (From firms to households).[in a 2 sector economy)
flow of money payments(Kaylop)Factor services ( From household to firms) &Goods & Services (From firms to households).[in a 2 sector economy)
A circular flow model