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The circular flow model of the economy is a conceptualization of the basic flows of income and spending in the economy during a given period of time. It is usually depicted on a diagram, which can be viewed at the Related Link.

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Q: What is the expanded circular flow model of the economy?
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Related questions

The circular flow model of a mixed economy shows .?

what does a circular model of a mixed economy show


How does the circular flow model of a mixed economy compare with that of a market economy?

Government is added into the circular flow model of a mixed economy.


Does the circular flow model of a mixed economy compare with that of a market economy?

Government is added into the circular flow model of a mixed economy.


How does the circular flow market of a mixed economy compare with that of a market economy?

Government is added into the circular flow model of a mixed economy.


Simple circular flow model shows that?

A simple circular flow model shows the flow of goods and services through the economy. It is basically a model that shows supply and demand in an economy.


What is circular flow model for an open economy?

it is a flow that shows the flow of money openly


Describe circular flow model of an open economy?

it is a flow of cash between businesses,fims


Explain four sector model with circular-flow diagram?

explain with the help of diagram circular flow of income model in a four sector economy?


What is the role for consumers and producers in a free market system?

A circular flow model


What does the circular flow diagram represent?

Economists use a circular flow model to highlight basic fetures of a market economy. The model shows how voluntary exchange between households and businesses answer the economy's "who" "how" and for whom questions and create a nexessary flow of money products and resources to help satisy wants.


Transactions made between households and businesses in a market economy are illustrated in which model?

marginal utility model ....i think circular flow model....


Why is the circular flow model important?

Total income in the economy must always equal total spending. :)