Monday, February 13, 2017

February 12, 2017

Circular Flow Model

February 12, 2017


Circular Flow Model- "The circular flow is a model of the economy in which the major exchanges are represented as flows of moneygoods 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."- Definition based off Wikipedia
From class:  It represents the transactions in an economy by flows around a circle
           Household -  a person or a group of people that share an income
           Business firm- organization that produces goods and services for sale




IF SOME MATERIAL THAT WASN'T COVERED DURING THE NOTES, THE LINK BELOW SHOULD BE A STRONG TOOL TO FIX THE  LACK OF INFORMATION IN THE NOTES






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