The circular flow of income is a __________ model that explains how an economy works.____ Economic Agents: - __________ (Consumers and factor owners) - __________ (Producers)____ Factor Market - Families offer __________ of production - Prices of factors are determined for __________, interest, and rent ____ Goods and Services Market - Firms sell __________ and __________ - Prices are formed through supply and demand____ - Real Flow : Physical movement of __________, _________ and __________ ____ Monetary Flow : Movement of __________ for payments____

Circular Flow Chart

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