whats an example of circular flow model of the economy?

Answer 1

Hmmm... How about a kid working at McDonald's?

He sits all day flipping burgers for a check. Then he cashes the check for money that he uses to buy food at McDonald's.

i think circular flow economy-wise is the money going in a loop. Like if i make electronics for Best Buy, then i use my money to buy electronics at Best Buy, so Best Buy needs to order more electronics, so I would get to make more parts, get paid.......
Ya know?

Answer 2

steve was right about the loop part. when the money is being spent, it creates more jobs (manufacturing the items, building the stores, working in the stores, working for the credit card company, ect....), therefore, more employed people have money to spend...thus the cycle...