Circular Flow Diagram. Circular flow diagram cycle diagram use creately s easy online diagram editor to edit this diagram collaborate with others and export results to multiple image formats. There are two common ways of making circular flow charts.
Market for goods and services where households purchase goods and services from firms in exchange for money. The model represents all of the actors in an economy as either households or firms companies and it divides markets into two categories. Tap diagram to zoom and pan.
Market for factors of production such as labour or capital where firms purchase factors of production from households in exchange for money.
Realistic circular flow diagram. The two groups that interact in the diagram are the. Be specific about what group pays the other in different stages. 6 01 circular flow diagram taxes the government needs money to fund research on water pollution and develop new technology that makes it less of a problem.
