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Resource Market
Income is exchanged for Resources / Households sell and Businesses buy
Product Market
Goods and Svc are exchanged for expenditures / Businesses sell and Households buy
Businesses
Demand/buy Resources and Supply/sell Goods and Services
Households
Demand/buy Goods and Service and Supply Resources
Flow of the Product
Households provide the resources that produce the goods services
Flow of Income
Businesses provide the income that the households use to buy the goods and services
If society spends 100%
The economy stays constant
If society spends less than (>) 100%
The economy grows
If society spends more than (<) 100%
The economy contracts