The Cash Flow System The circular flow of income involves two basic principles. The first principle says that in any exchange process, the seller or producer receives the same amount as the buyer or consumer spends. The second principle states that goods and services flow in one direction and money payment to get these goods.
The National and International Economy Essay title: The National and International Economy THE NATIONAL AND INTERNATIONAL ECON0MY The output of an economy has a significant influence on its inhabitants’ living standards. The higher the output the more goods and services people can enjoy. The level of output is influenced by the total level of demand.
