Circular Flow Diagram

Circular Flow Diagram. The circular flow shows how national income or Gross Domestic Product is calculated. Read about the circular-flow model including, the movement of money, goods and services, and The outer lines on the diagram (the lines labeled "Labor, capital, land, etc." and "Finished product".

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Back to school tools to make transitioning to the new year totally seamless. Money flows from producers to workers as wages and flows back to producers as payment for products. The continuous flow of money between these sectors According to the diagram above, there are two opposing flows between the households and the firms.

The circular flow model and GDP.

Learn about circular flow diagram with free interactive flashcards.

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The circular flow model demonstrates how money moves through society. The flow of inputs and outputs. The circular flow diagram template is included in Business Diagrams Solution for ConceptDraw Solution Park and is available from ConceptDraw STORE.

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