Meaning:- It refers to the flow of money. Income or the flow of goods and services across different sections of economy in a circular flow.
Types of circular flow.
(1). Prodect flow (real flow).
- Factor flow (flow of factor flow).
- Product / Goods flow (flow of goods and services).
Product flow
Meaning:- it refers to the flow factor services and flow of goods or services. It also called output flow or real flow.
Product flow
Meaning:- it refers to money flow in the form of factor payments and consumption expenditure. It is also called money flow.
The expenditure on goods and services take the form of exxpenditure flow.
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