The document describes the circular flow of economic activity through different economic models. The basic 2-sector circular flow model shows the reciprocal relationship between households and firms, with households supplying factors of production and buying goods/services, and firms using factors of production and selling goods/services. A 5-sector model adds the financial, government, and international sectors and considers injections and leakages that impact equilibrium. The models demonstrate how income and spending circulate through an economy at both the micro and macro levels.