Circular flow diagram of income and expenditures


Draw the circular flow diagram of income and expenditures. Include the demand sectors C, I, and G; the flow(s) of real goods and services; the flow(s) of income ; and the flow(s) of spending. Also include the factor markets, the product markets and the financial sector. Provide a brief written narrative that explains the circular flow nature of the model and what each sector does in the economy.

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Microeconomics: Circular flow diagram of income and expenditures
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