Question

In 3.5 sentences, explain how the circular flow works. (In other words, explain how money exchanges hands in the product

Answer 1

Explanation:

Well lets say that you were working at Taco Bell and you got your in cash paycheck which was $200. You don't have to pay electricity bills or water bills because you live with your parents so you want to go get something to eat. Now your at your favorite place, Texas Steakhouse and the meal your getting cost's $50. now you will give them $50 dollars in cash, they need to buy supplies so they use the $50 dollars you gave them along with $150 of the money that other people gave them for food. They meet up with the supplier and they give him the $200 dollars for supplies they needed. Now the supplier will use that money to grow his crop's so he can keep supplying restaurants with the supplies they need & so on & so forth. Its a cycle that money goes through to supply the world.