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Product Market
HouseholdFirms
Resource Market
Government
Product Market
HouseholdFirms
Resource Market
Government
Sell Inputs to Production
Purchase Inputs to Produce
SellGoods an...
Product Market
HouseholdFirms
Resource Market
Government
Income from Factors of Production
Resource Costs (Nominal)
Revenu...
Product Market
HouseholdFirms
Resource Market
Loanable Funds
PayTaxes
GovernmentForeign
Buying and Selling of
Goods and Se...
Product Market
HouseholdFirms
Resource Market
Loanable Funds
GovernmentForeign
Budget Deficient
Save (Excess
Funds)
Borrow...
Product Market
HouseholdFirms
Resource Market
Loanable Funds
GovernmentForeign
Supply (excess funds)
Imports
and
Exports
B...
Circular flow of income
Circular flow of income
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Circular flow of income

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Transcript of "Circular flow of income"

  1. 1. Product Market HouseholdFirms Resource Market Government
  2. 2. Product Market HouseholdFirms Resource Market Government Sell Inputs to Production Purchase Inputs to Produce SellGoods and Services Consumption of Goods and Service
  3. 3. Product Market HouseholdFirms Resource Market Government Income from Factors of Production Resource Costs (Nominal) Revenue from the Sale Consumption Expenditures
  4. 4. Product Market HouseholdFirms Resource Market Loanable Funds PayTaxes GovernmentForeign Buying and Selling of Goods and Services
  5. 5. Product Market HouseholdFirms Resource Market Loanable Funds GovernmentForeign Budget Deficient Save (Excess Funds) Borrowed Funds (Investment)
  6. 6. Product Market HouseholdFirms Resource Market Loanable Funds GovernmentForeign Supply (excess funds) Imports and Exports Borrowed Funds (Investment) Save (Excess Funds) Budget Deficient Buying and Selling of Goods and Services PayTaxes Revenue from the Sale Consumption Expenditures Income from Factors of Production Resource Costs (Nominal) Sell Goods and Services Purchase Inputs to Produce Sell Inputs to Production Consumption of Goods and Services
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