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'Circular flow of income'- what are …

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'Circular flow of income'- what are the principles?
  • 1 answers

Yogita Ingle 5 years, 5 months ago

(i) In exchange process, the seller (producer) receives the same amount which the buyer (consumer) spends.
(ii) Goods and services flow in one direction and the money payment to acquire them flow in the return direction giving rise to a circular flow.

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