The movement of inputs and outputs among households, businesses, and governments is referred to as circular flow.

Question

Quizplus · Accepted Answer

This is true. The circular flow model is a simplified representation of the economy, which shows the movement of goods, services, and money between households, businesses, and governments. The model assumes that these entities are interconnected and that their actions have an impact on each other.

The Movement of Inputs and Outputs Among Households, Businesses, and Governments