One of the most basic models of the economy is:

Question

Quizplus · Accepted Answer

The circular flow model is a basic model of the economy that shows the flow of goods and services between households and firms, as well as the flow of money between households, firms, and the government. It demonstrates how production generates income, which is spent on goods and services, which in turn generates more production. Real GDP per capita and the consumer expenditure model are more specific models that focus on specific aspects of the economy, while the current population survey is a tool used to collect data on the population but is not a model of the economy.

One of the Most Basic Models of the Economy Is