The circular flow of income
4:04
economicsonline.co.uk
The circular flow of income
National income, output, and expenditure are generated by the activities of the two most vital parts of an economy, its households and firms, as they engage in mutually beneficial exchange.HouseholdsThe primary economic function of households is to supply domestic firms with needed factors of production – land, human capital,
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Circular flow of income Circular Flow Diagram
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