Circular Flow of Physical Goods and Money Income

Land, Labor, Capital and Entrepreneurship

Rent, Wage, Salary, Interest, and Profit

HOUSEHOLDS PRODUCING UNITS

Goods and Services

Consumption Expenditures

Circular Flow of Income Circular Flow of the Production Process

Circular Flow of Goods among Production Units Circular Flow of Income among Production Units

Raw Material Firm Raw Materials

Money Payments for Raw Materials

Households

Consumers Intermediate Good Firm

Final Goods Intermediate Goods

Money Payments for Final Goods Money Payments for Intermediate Goods

Final Good Firm

Circular Flow of Goods and Income of Household and Firms with the Government and Foreign Countries

GOVERNMENT
Wages, Transfer Payments Purchase of Goods and Services

Taxes Taxes

Economic Resources

Wages, Rent, Dividends and Interests

HOUSEHOLDS PRODUCING UNITS

Consumption Expenditures

Goods and Services

Money Payments for Imports FOREIGN COUNTRIES Money Payments for Exports

Circular Flow of Economic Activities Reflecting the Outflows and Inflows

Land, Labor, Capital and Entrepreneurship

Rent, Wage, Salary, Interest, and Profit

HOUSEHOLDS PRODUCING UNITS

Goods and Services

Consumption Expenditures

Savings BANKS Investments

Taxes GOVERNMENT Expenditures

Imports FOREIGN COUNTRIES Exports