Circular flow of income is one of the macroeconomic model that tries to explain a countries economy within a particular time frame. Circular flow of income is a macroeconomic model that shows the flow of monies between different sectors of the economy. Circular flow of income has 3 niches that well explains it while drawing some assumptions. We have the 2-sector, 3-sector and 4-sector model.
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https://www.youtube.com/watch?v=8XrEuXCoZGw

The video above best explains the concept in an elaborate way