The five sector model (aka the circular flow of income) — MR SYMONDS
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The five sector model (aka the circular flow of income) — MR SYMONDS
Economics can be an incredibly complicated discipline. We do our best to simplify things at times. This is the case with the five sector model, also known as the circular flow of income. (In this blog I’m going to call it the five sector model. Both terms are correct.) With the five sect
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Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram onto a sheet of paper and then add a foreign country as a third agent. Draw a rough sketch of the flows of imports, exports, and the payments for each on your diagram. | Numerade
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