The circular flow model demonstrates how money moves through society. ... These factors are the components of a nation's gross domestic product (GDP) or national income.

In the study of economics, one learns the circular flow of the economy between firms and households. This post, however, presents another circular flow model based on capital and labor. (It is a ...

Learn the meaning of the terms "money flow" and "real flow." Find out how they relate to each other in the circular flow of income economic model. Skip to content ...

Leakage is an economic term that describes capital or income that escapes an economy or system in the context of a circular flow of income model. It results in a gap between supply and demand.