Practice what you have learned about the circular flow model and how gross domestic product (GDP) is calculated in this four-question exercise.

Explains how resources, goods and services, and payments flow through the economy using the economic model of circular flow.

A summary of the circular flow model which demonstrates the interdependence of households and firms in a market system.

A diagram and explanation of the circular flow of money.

In this instructional activity summary review and remind yourself of the key terms and calculations used in describing the output of an economy. Key topics include the expenditures approach, income approach, and value added approach to...

By the end of this section, you will be able to interpret a circular flow diagram, explain the importance of economic theories and models, and describe goods and services markets and labor markets.

This is a list of economics key terms and definitions used in Chapter I: Welcome to Economics! of the TEA AP Macroeconomics online text.