Flujo circular

Abstract

It helps us to easily understand how an economy works where there is money exchange between consumers and producers. This model could be made more complex if we add the state or international trade, but the quality of this model is its simplicity to understand the functioning of the economy. Analyze the functioning of macroeconomics by identifying the economic variables that influence the economic policy of a country and its relations whith other economies, to interpret its effects on local economic entities.