Asked by Kassy Lazcano on May 05, 2024
Verified
The circular flow model is not used anymore because it fails to perfectly replicate real world situations.
Circular Flow Model
An economic model that depicts the continuous flow of money, goods, services, and factors of production between households and businesses in an economy.
- Familiarize oneself with the circular-flow diagram and its role in explicating economic phenomena.
Verified Answer
DL
Daniella LovatoMay 09, 2024
Final Answer :
False
Explanation :
The circular flow model is still used as a basic economic model to illustrate the flow of goods and services between households and firms, despite its simplifications and assumptions.
Learning Objectives
- Familiarize oneself with the circular-flow diagram and its role in explicating economic phenomena.
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