What is the circular flow model?

In economics, a circular flow model is a diagram that is used to represent the monetary transactions in an economy. There are two flows present within the model including flows of physical things (goods or labor) and flows of money (what pays for physical things). read more

The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. between economic agents. The flows of money and goods exchanged in a closed circuit correspond in value, but run in the opposite direction. read more

A simple economic model illustrating the flow of goods and services though the economy. In the model, producers are termed as "firms" while consumers are referred to as "households.". Firms supply goods and services while households consume these goods and services. read more

The circular flow of income is a neoclassical economic model depicting how money flows through the economy. The circular flow of income is a neoclassical economic model depicting how money flows through the economy. read more