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43 in the simple circular-flow diagram the participants in the economy are

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ch 2 Flashcards | Quizlet which of the following is true about the circular flow diagram ... in the simple circular flow diagram, the participants in the economy are. A nation's economy: Circular flow diagram | Policonomics The circular-flow diagram (or circular-flow model) is a graphical representation of the flows of goods and money between two distinct parts of the economy: -market for goods and services, where households purchase goods and services from firms in exchange for money Circular Flow Model Economists use the circular flow diagram to... Money flows in one direction while goods, services, and the factors of production flow in the opposite direction. 2 Circular Flow Diagrams Resource or Factor 1 The Circular Flow The simple circular flow model of the economy is designed to have us understand the basic operations of the economy. In the simple circular-flow diagram the participants in the economy are