Circular Flow of Income Model Overview

Taxes, Saving, Imports

Government spending, Investment, Exports

Labour, Land, Capital, Entrepreneurship

<p>Wages, Rent, Interest, Profits</p> Signup and view all the answers

<p>To account for leakages and injections beyond households and firms</p> Signup and view all the answers

<p>Households and firms</p> Signup and view all the answers

<p>Owners of factors of production and buyers of goods/services</p> Signup and view all the answers

<p>Producing goods/services by hiring factors of production</p> Signup and view all the answers

<p>By supplying factors of production to firms</p> Signup and view all the answers

<p>To illustrate the interdependence between key economic decision makers</p> Signup and view all the answers