What two groups of decision makers are represented in the basic circular flow model?

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The basic circular flow model represents two groups of decision makers: households and firms. Households supply factors of production such as labor, land, and capital to firms, and in return, receive goods and services from those firms. Firms use those factors of production to produce goods and services, which they sell to households. This creates a circular flow of income and expenditure between households and firms.

What Two Groups of Decision Makers Are Represented in the Basic