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2.1.2 Circular Flow

Part of Economic Indicators and the Business Cycle in AP® Macroeconomics. Read the opening section, then create a free account for the full interactive lesson, practice, and progress tracking.

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Circular Flow

The circular flow diagram is a fundamental model in economics that illustrates the continuous movement of money, goods, and services in an economy. It helps to explain how different sectors of the economy interact with each other.

In this unit

9 lessons

  1. 2.1.1GDPPreview lesson
  2. 2.1.2Circular FlowThis lesson
  3. 2.2Limitations of GDPPreview lesson
  4. 2.3.1UnemploymentPreview lesson
  5. 2.3.2Types of UnemploymentPreview lesson
  6. 2.4Price Indices and InflationPreview lesson
  7. 2.5Costs of InflationPreview lesson
  8. 2.6Real v. Nominal GDPPreview lesson
  9. 2.7Business CyclesPreview lesson

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