Answer to Question #193589 in Macroeconomics for sha

Question

n the circular flow of goods and services …

Answer 1

n a circular flow of goods and services is a model that shows the relationship between firms, households, and the government. It describes the balance between leakages and injections in the market economy. in this circular model, money in the economy is used to buy goods and services. Money flows in the economy in the opposite direction while goods and services move in the same direction.