2.3.4.1a - circular flow of income

The circular flow of income.

Use a - circular flow of income to connect the rule to the data and decision in the question.

This matters because a - circular flow of income determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - circular flow of income to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - circular flow of income is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.