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The circular flow of income

The circular flow of income

Two-sector circular flow showing real flows of factors, goods and services, and opposite money flows of income and expenditure

The circular flow of income is a model showing how money, factors of production and output move continuously between households and firms. Households supply labour, land, capital and enterprise to firms.

2.4.1 National income Lesson

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

Step-by-step lessons on Edexcel A A Level Economics 2.4.1 National 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