Circular Flow Model | Definition & Examples
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Study.comBrianna Whiting
Circular Flow Model | Definition & Examples
Learn the definition and significance of the circular flow model in economics and how it applies to real life. Understand and be able to apply the circular flow diagram and chart.
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SOLVED: The circular flow modelThe following diagram presents a circular flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in blue) shows the corresponding flow of inputs and outputs.Based on this model, households earn incomes when purchasing in the markets for inputs.
SOLVED: The circular flow modelThe following diagram presents a circular flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in blue) shows the corresponding flow of inputs and outputs.Based on this model, households earn incomes when purchasing in the markets for inputs.
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SOLVED: The circular flow modelThe following diagram presents a circular flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in blue) shows the corresponding flow of inputs and outputs.Based on this model, households earn incomes when purchasing in the markets for inputs.
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