The Circular Flow Model shows us how money moves around in our economy. There are four important parts in this model:

1. Households:

   • Households are like the people and families in a community.
   • They work and provide jobs. Every year, they earn about $60 trillion from their jobs.

2. Firms:

   • Firms are businesses that make goods and provide services.
   • They pay people for their work. Each year, these businesses make around $25 trillion in sales.

3. Product Markets:

   • Product markets are places where people buy and sell goods and services.
   • In 2022, people spent a total of $13 trillion in these markets.

4. Factor Markets:

   • Factor markets are where companies buy the resources they need and pay for them.
   • About $10 trillion is used every year to buy these resources.

All these parts work together to help our economy stay strong and grow.