Simple economies can be described in terms of three major economic flows. These are:

Question

income, spending and saving.


spending, production and saving.


income, saving and investment.


income, spending and production.


income, spending and net exports.

Answer 1

In simple economies, the three major economic flows can be best described as income, spending, and production. This framework illustrates how income generated from production is spent by consumers and businesses, which in turn fuels further production.