The core loop
The core loop
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.
Step-by-step lessons on OCR A Level Economics 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.