Chp2 - The Circular Flow Model

Chp2 - The Circular Flow Model - the goods market Outer...

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Circular Flow Diagram 1 Households Factor Markets Factors of production are traded Firms Goods Markets Goods and services are traded Households are buyers in the goods market and sellers in the factor market Firms are buyers in the factor market and sellers in
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Unformatted text preview: the goods market Outer flow is real Inner flow is monetary Labour, land, capital and entrepreneurship Labour, land, capital and entrepreneurship Goods and Services Goods and Services Rent, wages, interest and dividends and profits Expenditures...
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