The circular flow model examines interactions between which two groups?

households and fimms

households and consumers

firms and producers

firms and government

Explanation:

An economic model showing the flow of money through the economy is called circular flow model. The simplest form of this model shows the income flow between the households and the business sectors.

Product market and resource market lies between the household sector and business sector, People( Household) purchase services and goods and the businesses provide it through product market.

Businesses need various resourced to produce goods and services, it gets labour from the household through the resource market. With the help of the labour businesses convert resources into services and goods.

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