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Circular-Flow Diagram
A model that illustrates the flow of goods and services and money between households and businesses in an economy.
Households
Economic units comprising all persons who occupy a housing unit, responsible for making consumption and investment decisions.
Demanders
Individuals or entities that express a willingness and ability to purchase goods or services at a given price.
Suppliers
Businesses or individuals that provide goods or services to another entity under terms specified in a contract.
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