This example highlights the complexity of the circular flow model as inputs and outputs continually cycle throughout a systematic economy. Explain Like I’m 5 Years Old Economics involves many ...

Learn the meaning of the terms "money flow" and "real flow." Find out how they relate to each other in the circular flow of income economic model. Skip to content ...

The circular flow model demonstrates how money moves through society. Money flows from producers to workers as wages and flows back to producers as payment for products.