In The Circular Flow Diagram

In The Circular Flow Diagram. Businesses produce goods and services and in the process of doing so, incomes are generated for factors of production (land, labour, capital and enterprise) - for example wages and salaries going to people in. Learn about circular flow diagram with free interactive flashcards.

34 In The Circular Flow Diagram, - Wiring Diagram Database
34 In The Circular Flow Diagram, - Wiring Diagram Database (Mamie Schneider)
The circle has throughout history played an important role. You can edit this Cycle Diagram using Creately diagramming tool and include in your Use Creately's easy online diagram editor to edit this diagram, collaborate with others and export results to multiple image formats. The circular flow shows how national income or Gross Domestic Product is calculated.

The circle has throughout history played an important role.

The 'rent, wages, profit and income' branch The diagram above has taken the first circular flow diagram a step further.

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In the opposite direction, we see money flowing from businesses to households and back again. Businesses produce goods and services and in the process of doing so, incomes are generated for factors of production (land, labour, capital and enterprise) - for example wages and salaries going to people in. If inflation in the United States is lower than inflation in other countries.

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