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The core loop

The core loop

Concept map of the circular flow of income with households and firms exchanging factors, incomes, goods, and spending, plus boxes listing injections and leakages The circular flow of income shows how money, goods and services, and resources move around an economy. At its core are households and firms, linked by the idea that one person's spending becomes another person's income.

Circular flow of income Lesson

  1. A Level
  2. /Economics
  3. /Circular flow of income