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Explain breifly circular flow of national …

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Explain breifly circular flow of national income

Posted by Gulab Singh 7 years, 1 month ago

CBSE > Class 12 > Economics

1 answers

Pushpraj Singh 7 years, 1 month ago

in two sector model the expenditure of one person is the income for other persone in geographical boundry house holds give there labour cap land and entrepreneur becouse of thes the firms paid them wages interest rent and profit this is income. for house holds but expence for firms after this the firm produce output and sell them to households becouse of this households pay them and purchase goods in this case households exoenditure is income for firm and this process is continue..... this whole concept is known as circular flow of income

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