Circular flow of income

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Notion

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Science and technology

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What Wikipedia says

The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. between economic agents. The flows of money and goods exchanged in a closed circuit correspond in value, but run in the opposite direction.

Excerpt from the Wikipedia article “Circular flow of income”, under the CC BY-SA 4.0 license. Read the article on Wikipedia

Image: Irconomics, CC BY-SA 3.0, via Wikimedia Commons.