Economy may be taken as cycles that are in a continues movement in two different directions, goods and services move from an a person, flowing all the way to business field and back to the individuals.
We also experience money movement from households to businesses and back again. And this represents the renumerations that we earn through work, but at the end of the day we need to buy items which accounts back to completion of the cycle.
The circular flow is majorly affected by factors of production that include, labour, Land, capital and entrepreneurs
The process can be summarized as follows,