The below mentioned article provides an overview on the Circular Flow of Economic Activity. After reading this article you will learn about: 1. Introduction to the Circular Flow of Economic Activity 2. The Circular Flow in a Two-Sector Economy 3. The Circular Flow in a Three-Sector Economy 4. The Circular Flow in a Four-Sector Economy. Introduction to the Circular Flow [...]
Let us learn about the Circular Flow of Income and Expenditure in a Two Sector Economy. The national income and national product accounts of a country describe the economic performance or production performance of a country . Various measures of the nation's income and product exist: The most frequently cited summary measures of an economy's performance is the gross national [...]
Let us make in-depth study of the circular flow of income in two sector, three sector and four sector economy. Circular Income Flow in a Two Sector Economy: Real flows of resources, goods and services have been shown in Fig. 6.1. In the upper loop of this figure, the resources such as land, capital and entrepreneurial ability flow from households [...]