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Circular Flow

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Money and real flows between households, firms, and both markets, with an optional government sector.

Drag curves to shift · Toggle curves with the Show / Hide buttons · Use fullscreen for presentations

Full guide: The circular flow model, diagram and leakages

Teaching AP Econ? Assign a graded circular flow activity to your class, auto-graded, scores in your gradebook.

Circular flow model diagram: households and firms linked through the product market and the factor market, with money flows one way and goods, services and factors of production the other
The circular flow model with money flows (solid) and real flows (dashed). Free to use on worksheets and slides: download the SVG, or drag the live version above to draw the case you need.

Put it on your own page: the Circular Flow embed, one line of HTML for a class site or LMS.

Circular Flow: key terms

Full glossary →
Circular Flow Model
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