What is the different between money flow and a real flow?

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1102405

2026-03-13 11:25

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Real flows are actual goods, services and resources flowing from one sector to another, usually in exchange for money through money flows.

e.g: Households provide labor to producers (a real flow) in exchange for wages (a money flow). Households then use their income as consumer spending (a money flow) in exchange for goods and services from the producer (real flow).

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