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The circular flow model reflects the flow of money, goods and services throughout the economy. This model is composed of households and business firms and it divides the markets into two categories, Product Market and Factor Market. In the Product Market, the households consume and …Read more
Outline the main features of the five-sector circular flow of income model of the Australian economy. Explain how leakages and injections influence the level of economic activity. The five sector circular flow of income model describes the operation of an economy and the linkages between …Read more