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22 May, 15:58

What happens to the circular flow model when consumers demand less?

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  1. 22 May, 16:00
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    The price increases.

    The circular flow of income, or wealth, is a model that explains the interaction between the agents of an economy in an aggregate way, through macroeconomics.

    This model is represented taking into account two main agents, participants in the economy, which are the companies and the families that integrate it. In addition, based on simplification, the model also considers the government as an agent.
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