Use stream of consciousness to answer the following. The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. between economic agents. The flows of money and goods exchanged in a closed circuit correspond in value, but run in the opposite direction. The circular flow analysis is the basis of national accounts and hence of macroeconomics.

What is meant by the circular flow of income?
To answer the question, consider the following: The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. between economic agents. Final answer: a model of the economy in which the major exchanges are represented as flows of money , goods and services , etc. between economic agents.