Lesson 02 | Circular Flow

(Grade 12)

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The open economy circular flow model is a summary of the interaction, the real flows and monetary flows as well as injections and leakages between the participants. The different markets (goods and services market, factor market and financial markets) facilitate the interaction between the participants. Economic equilibrium is important, but situations of economic disequilibrium can also arise due to injections and leakages. Therefore, economists use different models to make predictions about the performance of the economy.

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Economics

Lessons

26 Lessons

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TBC

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FREE

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