The circular flow model of a mixed economy shows the physical flow and monetary flow between households and firms in both the product and factor markets. This model illustrates how goods and services flow between businesses and consumers, as well as how money flows in the opposite direction as payments for these goods and services. It also includes the role of the government in this flow.
The circular flow model of a mixed economy shows _____.
how taxes and profits are related
how government interacts with households and firms in the product and factor markets
only how firms and households interact
the physical flow and monetary flow between households and firms in both the product and factor markets
1 answer
1 answer