firms in the circular flowwe divide all firms, Macroeconomics

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firms in the circular flowwe divide all firms

Firms in the circular flow

We divide all firms into 3 categories: F_R comprises all firms which acquire raw material (farm products, iron ore and so on), F_H all those that produce semi-manufactured goods (pulp, steel and so on) and F_F all firms producing finished goods (cars, software and so on). We use symbol Y for GDP.

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