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The circular flow model examines interactions between which two groups?

households and fimms

households and consumers

firms and producers

firms and government

2 Answers

3 votes

Answer:A

Step-by-step explanation:

User Cvbarros
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Answer: household and firms

Step-by-step explanation:

The circular flow model which is also referred to as the circular flow of income simply shows how money flows or changes hand between the household and the firms.

For example, the individuals purchases goods from the firm's and the firms pay individuals which are the workers wages and salaries. Money moves through different ways in the economy.

User Cyril Cressent
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