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Real flow and money flow in circular flow of national income?
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Real flow and money flow in circular flow of national income?
Real flow don't involve flow of money where as money flow involves money
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Direction: Read the below case and answer the questions that follow:Circular Income Flow in a Two Sector Economy: In the figure given we can see that upper loop shows the resources such as land, capital and entrepreneurial ability flow from households to firms in the direction shown by the arrow direction.The money flows from firms to the households as factor payments in the form of wages, rent, interest and profits, shown by the arrow direction.The lower part of the figure shows the flow of money from households to firms in the form of consumption expenditure done by the households to purchase the goods and services produced by the firms, making the flow of goods and services from firms to households.Thus, we see that money flows from business firms to households as factor payments and then it flows from households to firms. Thus, there is, in fact, a circular flow of money or income. This is how the economy functions.Which of the following is not the significance of Circular Flow of Income?

Direction: Read the below case and answer the questions that follow:Circular Income Flow in a Two Sector Economy: In the figure given we can see that upper loop shows the resources such as land, capital and entrepreneurial ability flow from households to firms in the direction shown by the arrow direction.The money flows from firms to the households as factor payments in the form of wages, rent, interest and profits, shown by the arrow direction.The lower part of the figure shows the flow of money from households to firms in the form of consumption expenditure done by the households to purchase the goods and services produced by the firms, making the flow of goods and services from firms to households.Thus, we see that money flows from business firms to households as factor payments and then it flows from households to firms. Thus, there is, in fact, a circular flow of money or income. This is how the economy functions.Circular flow of income refers to the flow of activities of production, income generation and expenditure involving different ___________ of the economy.

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Real flow and money flow in circular flow of national income?
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Real flow and money flow in circular flow of national income? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Real flow and money flow in circular flow of national income? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Real flow and money flow in circular flow of national income?.
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