Circular Flow in Two Sector Economy
In the upper loop of this figure the resources such as land capital and entrepreneurial ability flow from households to business firms as indicated by the arrow mark. The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money goods and services etc. What Is The Circular Flow Model Of The Economy Circular Flow Of Income Economic Model Economy It is one of the most basic concepts in macroeconomics. . The idea of circular flow was first introduced by economist Richard Cantillon in the 18 th century and then progressively developed by Quesnay Marx Keynes and many other economists. Based on their Board approved policies a Master Agreement may be entered into between the two partner institutions. Y C I G X. Adding these we have. The Circular Flow. Co-Lending by Banks and NBFCs to Priority Sector. Economy is the circular clo sed flow of ma...