Which diagram illustrates the flow of income earned and expenditures made by different sectors within the economy?

Choose the correct answer

Explanation

Option A refers to a general income and spending diagram. Option B represents the aggregate demand and supply model. Option C correctly identifies the circular flow diagram, which depicts the movement of income and payments among economic sectors. Option D is unrelated, showing income against prices.

Which diagram illustrates the flow of income earned … — The National Economy | PakQuizHub