The Circular Flow Model
Visualizing the flow of money, resources, and products between households and firms.
Key Questions
- 1How do households act as both consumers and resource providers?
- 2Where does the government fit into the circular flow of a mixed economy?
- 3What happens to the economy when the "leakages" (savings, taxes) exceed "injections" (investment, spending)?
Common Core State Standards
Suggested Methodologies
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