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?? Chapter 10: The Circular Flow and Gross Domestic Product ? National income and product accounts/National accounts: keep track of the flows of money between different sectors of the economy/ keep track of the spending of consumers, sales of producers, business investment spending, government purchases, and a variety of other flows of money among different sectors of the economy The Simple Circular Flow Diagram: Simple economic diagram with households and firms, omits a number of real-world complications in the interest of simplicity Household: consists of either an individual or a group of people who share their income Firm: is an organization that produces goods and services for sale and employs members of households
