In the study of economics, one learns the circular flow of the economy between firms and households. This post, however, presents another circular flow model based on capital and labor. (It is a ...

Back in the 1940s, when Paul Samuelson first drew the iconic circular flow diagram—depicting the monetary flows that circulate between households and firms, and banks and governments—he essentially ...

Learn the meaning of the terms "money flow" and "real flow." Find out how they relate to each other in the circular flow of income economic model. Skip to content ...