Question

The three basic flows in an economy are:


Production, exchange and spending


Production, spending and consumption


Income, exchange and spending


Production, income and spendin

Answer 1

The three basic flows in an economy are: **Production, income, and spending**.

This framework represents the flow of goods and services produced in the economy (production), the income generated from this production (income), and the expenditure made by households and businesses (spending) to purchase goods and services. This cycle is fundamental to understanding how economies function.