Respuesta :
The circular flow model demonstrate that the goods and services produced by business firms are sold through goods market
What does the circular flow model show?
The circular flow model shows the interaction between two groups of economic decision-makers—households and businesses—and two sorts of economic markets—the market for resources and the market for goods and services. The circular flow model may be a simple tool for learning about the economy. It shows the connection between households and businesses and how these different decision-makers in the economy fit together.
Plus, it shows how money keeps economic resources and goods and services traveling and around and around the economy.
What do firms produce during a circular flow diagram?
Businesses (firms) within the Product Market are producers of goods and services in the circular flow model. They sell goods and services to households. They earn revenue in exchange for his or her goods and services
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