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28jstinebaugh

Answer:

The basic purpose of the circular flow model is to understand how money moves within an economy. It breaks the economy down into two primary players: households and corporations. It separates the markets that these participants operate in as markets for goods and services and the markets for the factors of production.

Explanation:

fordgt1324730

Answer:

The circular flow diagram is a visual representation of the flow of money, resources, and goods and services in an economy. Its purpose is to illustrate how different sectors of the economy interact with each other and how resources and income circulate within the economy.

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