Economic Circular Flow Diagram
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Economic Circular Flow Diagram

GovernmentMarkets for goods &servicesFirmsGross domestic productinvestment spendingImportsRest of worldExportsHouseholdsTaxesGovernment transfersconsumer spendingFinancialMarketsPrivate savingsFactorMarketWages, dividends, rentBorrowing & stock issues by firmsForeign borrowing and sales of stockForeign lending and purchases of stockGovernment borrowingGovernment purchases of goods & services
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publish time: 2021-06-29
Vickie

Using a circular flow chart explains the relationship between various sectors of the economy in terms of money. It shows how money, products, services, and other things get circulated from one economic agent to another. The circular chart data shows the flow between the national accounts, overseas sectors, and firms. It also keeps the macroeconomics flow in the macroeconomics intact.