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The circular flow

The circular flow

The circular flow of income is the continuous movement of income and spending between households, firms, the government and, in an open economy, the rest of the world. One agent's spending becomes another agent's income, allowing the flow to continue.

4.2.1 circular flow of income in a closed economy and an open economy Lesson

  1. Intl A Level
  2. /Economics
  3. /4.2.1 circular flow of income in a closed economy and an open economy

Step-by-step lessons on CIE Intl A Level Economics 4.2.1 circular flow of income in a closed economy and an open economy. Each one builds up to exam-style questions.

Lessons