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In a Circular-Flow Diagram, One Loop Shows the Flow of Real

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In a circular-flow diagram, one loop shows the flow of real goods, services, and factors of production, and the other loop shows the corresponding flow of dollars.


Definitions:

Extension

The movement by which the angle between two bones is increased, typically referring to limbs or joints.

Circumduction

A circular movement of a limb or eye that combines flexion, extension, abduction, and adduction.

Protraction

The act of moving a body part forward, as in pushing the shoulders or jaw forward.

Supination

A rotational movement of the forearm that turns the palm upward or forward.

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