2.2.1 The circular flow of income
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The economy as a flow

The economy as a flow

Flowchart of circular flow of income showing households and firms linked by factors of production, factor incomes, consumer expenditure and goods and services, with savings to the financial sector, taxes to government, imports to the overseas sector, and injections of investment, government spending and exports The circular flow of income shows how money, resources, goods and services move between sectors of the economy. It helps explain why one person's spending becomes another person's income.

2.2.1 The circular flow of income Lesson

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