The concept of the circular flow of economic activity illustrates the point that all economic activities are interdependent.

Question

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The circular flow of economic activity is a model that illustrates how money moves through an economy in a circular manner, showing the interdependence between households, businesses, and the government. It highlights how these entities interact with each other in the markets for resources and products, demonstrating the interconnectedness of economic activities.

The Concept of the Circular Flow of Economic Activity Illustrates