Circular Flow of Income

The circular flow of income is, as the name suggests, the flow of income around an economy that goes in a circle. Households earn money by working for firms, and then they spend money on goods/services which goes back into the hands of firms, which is then used to pay employees.

Injections
Money can be injected into the circular flow of income through various means:
 * Exports
 * Subsidies
 * Consumer Spending

Withdrawals
Money can be withdrawn from the circular flow of income through various means:
 * Imports
 * Taxes
 * Consumer Saving