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2.4.1 National income
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The circular flow of income

The circular flow of income

Circular flow of income showing households, firms, real flows and money flows

The circular flow of income is a model showing how money, factors of production and output move continuously between households and firms. Households supply factors of production, while firms use them to produce goods and services.

2.4.1 National income Lesson

  1. A Level
  2. /Economics
  3. /2.4.1 National income

Step-by-step lessons covering Edexcel A A Level Economics 2.4.1 National income for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.