2. Product Market
HouseholdFirms
Resource Market
Government

3. Product Market
HouseholdFirms
Resource Market
Government
Sell Inputs to Production
Purchase Inputs to Produce
SellGoods and Services
Consumption of Goods and Service

4. Product Market
HouseholdFirms
Resource Market
Government
Income from Factors of Production
Resource Costs (Nominal)
Revenue from the Sale
Consumption Expenditures

5. Product Market
HouseholdFirms
Resource Market
Loanable Funds
PayTaxes
GovernmentForeign
Buying and Selling of
Goods and Services

6. Product Market
HouseholdFirms
Resource Market
Loanable Funds
GovernmentForeign
Budget Deficient
Save (Excess
Funds)
Borrowed Funds
(Investment)

7. Product Market
HouseholdFirms
Resource Market
Loanable Funds
GovernmentForeign
Supply (excess funds)
Imports
and
Exports
Borrowed Funds (Investment) Save (Excess Funds)
Budget Deficient
Buying and
Selling of
Goods and
Services
PayTaxes
Revenue from the Sale
Consumption Expenditures
Income from
Factors of
Production
Resource Costs (Nominal)
Sell Goods
and
Services
Purchase Inputs to Produce
Sell Inputs to Production
Consumption of Goods
and Services