Under the two-sector circular flow framework, House Holds must purchase utilities, goods, and services from Businesses in order to produce the output they will provide to the households.
What is the two-sector circular flow model?
In the model above, the household and the businesses are known as economic agents.
The circular flow of income also assumes a closed circuit between Households and Firms, which in real economics is actually not tenable.
Please see the link below for more about the two-sector circular flow model:
https://brainly.com/question/7731711
