National Income Accounting and Aggregate Measures · Macroeconomics

The Circular Flow of Income

Understanding the continuous movement of money and goods between households, firms, and the government in a two-sector and three-sector model.

Key Questions

  1. 1What incentives are driving the flow of resources between households and firms?
  2. 2How do leakages like savings and injections like investment impact national stability?
  3. 3Who benefits and who bears the costs when the circular flow is disrupted by a supply shock?

CBSE Learning Outcomes

CBSE: National Income and Related Aggregates - Class 12
Class: Class 12
Subject: Economics
Unit: National Income Accounting and Aggregate Measures
Period: Macroeconomics

Suggested Methodologies

Ready to teach this topic?

Generate a complete, classroom-ready active learning mission in seconds.

Generate a Custom MissionBrowse Lesson Plan Templates

More in National Income Accounting and Aggregate Measures

GDP and Welfare Metrics

Analyzing Gross Domestic Product as a measure of economic health and its limitations in reflecting human well-being.

2 methodologies

Browse curriculum by country

AmericasUSCAMXCLCOBR
EuropeUKIEFRDEESITNLPTSE
Asia & PacificINSGAU