Answer: True (?) I’m assuming. Only did a little research
In the circular flow model, the market economy creates continuous, repetitive flows of goods and services, resources and money. In this model, households spend income in the product market. According to the circular flow model, households buy the goods and services that businesses make available in the product market. Moreover, In the circular flow model, businesses will buy resources from and sell products to households and other businesses. In this way: The function of businesses in the circular flow model is purchase resources and sell products.
This is of course a very complicated issue and there are several reasons why this conflict been so difficult to resolve, but the main reason is that both sides are claiming territory that they have both legitimately held.
