Circular Flow Model v2.0

Remember how last time I talked about the importance of being able to condense economics into its essence? Remember how I used the circular flow model as an example?

Well, here's what a circular flow model really looks like, with more economic variables factored in. I found it the other day idly browsing through my handy economics textbook. Perhaps now you'll understand the importance of simplicity.

Note: unfortunately, this blogger won't let me upload a full sized picture. If you want to see a larger version of the image with the descriptions, you'll need to actually click on the picture to open it in a new window.