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spayn [35]
3 years ago
7

In the circular flow model _______.

Business
1 answer:
Yuri [45]3 years ago
6 0

<u>Answer: </u>

In the circular flow model, goods markets provide for the transfer of money and labor markets provide for the transfer of inputs.

<u>Explanation: </u>

  • The liquidity of money in goods markets is kept unhindered by the flow of goods, as a result of which, the transfer of money keeps happening.
  • On the other hand, the labor markets function as the source of necessary input that is required for the business to keep running.
  • When both these markets work in synchronous, there is a circular flow of entities within the market.
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