The circular flow model illustrates that aggregate spending in the product markets equals 70 percent of aggregate income earned in the factor markets.

Name: The circular flow model illustrates that aggregate spending in the product markets equals 70 percent of aggregate income earned in the factor markets.
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The circular flow model illustrates that aggregate spending in the product markets equals aggregate income earned in the factor markets. There is no set percentage identified in the model.

The Circular Flow Model Illustrates That Aggregate Spending in the Product