The Circular Flow Model

circular flow diagram

Why National income is different from country to country? Of the factors mentioned in the post Determines incom nation, explain that why some countries have higher incomes than in other countries, and suggests some difficulty in raising the national income. We will investigate this issue more fully in the upcoming posts. This time we'll talk of National Revenue and the theory of circular flow.

What Determines National Income

Why national income is not always as great as it should. And what can be done to make the national income bigger?. The size of a country's national income (which is more or less the same as "gross national product" or "gross domestic product", which has been discussed in the post monopoly depends on a number of things.