How are free market circular flow models different from mixed economy circular flow models?

Free market circular flow models emphasize minimal government intervention, where households and firms interact freely in the marketplace, determining prices and resource allocation solely through supply and demand. In contrast, mixed economy circular flow models incorporate government involvement, illustrating how policy decisions can influence economic activities, redistribute income, and provide public goods. This government role can stabilize the economy, correct market failures, and address social equity concerns, distinguishing it from the purely market-driven approach of free market models.