Part 1) Draw Circular flow and and banks, government, and export and import to the circular flow Figure below

Figure 2-7 The Circular-Flow Diagram This model represents the flows of money and goods and services in the economy. In the markets for goods and services, households purchase goods and services from firms, gener- ating a flow of money to the firms and a flow of goods and services to the households. The money flows back to households as firms purchase factors of production from the house- holds in factor markets. Markets for goods and services Money Households Money Goods Factors and services Goods and services Factors Money Firms Money Factor markets