Explain circular flow of income in three sector economy with the help of appropriate diagram.

The circular flow of income in a three-sector economy involves the continuous movement of money and goods between households, businesses, and the government. In this model, the economy is simplified to include only three sectors: households, businesses, and the government. These sectors are interconnected through the flow of income, expenditure, and goods and services.

In a three-sector economy, households provide factors of production (labor, capital, land, and entrepreneurship) to businesses in exchange for income in the form of wages, rents, interest, and profits. This income is then used by households to purchase goods and services _____ __________ ____ ________ ______ ______.
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