The circular flow model demonstrates how money moves from producers to households and back again in an endless loop. In an economy, money moves from producers to workers as wages and then back ...

In the study of economics, one learns the circular flow of the economy between firms and households. This post, however, presents another circular flow model based on capital and labor. (It is a ...

Learn the meaning of the terms "money flow" and "real flow." Find out how they relate to each other in the circular flow of income economic model.