Advertisements
Advertisements
Question
Explain three phases of a circular flow.
Explain
Advertisements
Solution
Production, distribution, and disposition are the three phases of a circular flow model in the economy.
Production of goods and services = Distribution of income (in terms of rent, interest, profit and wages) = Disposition of income in terms of expenditure on the goods and services.
shaalaa.com
Is there an error in this question or solution?
Chapter 31: National Income and Circular Flow of Income - TEST QUESTIONS [Page 31.15]
