Circular Flow

In the Circular Flow of Income Diagram, withdrawals include Savings, Imports, and ___

Injections into the circular flow include ___

Who are the two principal agents of the economy in the basic model?

• Government and Banks

• Firms and Households

• Stock Market and Real Estate

• Labor Unions and Nonprofit Organizations

How does the addition of the Government and Foreign sector complicate the model in the Circular Flow of Income Diagram?

What does the Circular flow of income diagram model?

• Distribution of wealth in the economy

• Exchange of goods and services in the economy

• Flow of money and resources in the economy

• Allocation of resources in the economy