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Sagot :
The Household line represent the flow of final goods and services and consumer spending while the Business line represent the flow of rent, wages, interest, and profits.
What is the circular flow diagram?
This is an economic diagram that illustrate the flow of money through the economy.
The four parts of the circular flow diagram includes:
- individuals,
- firms,
- market for goods and services,
- market for factors of production.
In conclusion, these economic diagram illustrates the system functions through the interactions of households and firms.
Read more about circular flow diagram
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