Answer:
FIRMS & HOUSEHOLDS , connected through PRODUCT MARKET & FACTOR MARKET
Explanation:
Circular Flow of Market (simple 2 sector model) : Shows circulation of payments & receipts of goods , services , factor services between different sectors of economy (households & firms here)
Households provide firms with Factors of Production : Land , Labour , Capital, Entrepreneur and get Factor Incomes : Rent , Wages , Interest , Profit fro them in return.
Firms provide households with goods , services and the latter pay price & consumption expenditure from their earned factor incomes to the former .
The exchange of factor services , goods & services is called : Real Flow Exchange of factor incomes , prices is called : Money Flow
