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The Circular Flow

The Circular Flow

Circular flow model showing households and firms exchanging resources, goods and services, factor payments, income, revenue and consumer spending

The circular flow of income is a model showing how households and firms are connected through production, income and spending. It is based on the identity that total income, total output and total expenditure are equal.

2.2.1 The circular flow of income Lesson

  1. A Level
  2. /Economics
  3. /2.2.1 The circular flow of income

Step-by-step lessons on AQA A Level Economics 2.2.1 The circular flow of income. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.

Lessons