Question

On the basis of the figure given below, identify the type of flow indicated by B and D:

Options

• Real flow

• Money flow

• Nominal flow

• National flow

Answer 1

Real flow

Explanation:

Real Flow is denoted by B and D. Real flow refers to the movement of commodities and services from one sector to another. B denotes the flow of goods and services from enterprises to households. D denotes the flow of factor services, such as land, labor, capital, and entrepreneurial skills, from the household sector to companies.