This example highlights the complexity of the circular flow model as inputs and outputs continually cycle throughout a systematic economy. Economics involves many moving, interacting parts.

referred to as the circular flow of income and expenditure, in the Keynesian model of economics. Within this depiction, leakages are the non-consumption uses of income, including saving ...

What is not seen in the blank spaces around Samuelson’s circular flow model are the vast quantities of energy, materials, and waste involved in economic activity. Leaving these invisible has proved ...