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What is the circular flow of income and expenditure? 2 месяца назад


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What is the circular flow of income and expenditure?

The circular flow of income and expenditure is an economic model that describes how money, goods, and services circulate within an economy. The circular flow model illustrates how money, goods, and services move within an economy among various economic actors, including households, businesses, governments, and the foreign sector. In a balanced economy, total household income equals total spending on goods and services, thus maintaining the circular flow of economic activity.

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