How does the economy actually function? This practical guide to the circular flow model breaks down the complex interactions between households, businesses, government, and the rest of the world, showing you how money and resources move to create growth, recession, and everything in between.

Ever wondered how economists strip away the effects of inflation to see an economy's true growth? This definitive guide walks you through exactly how to calculate real GDP, from the basic formula to finding the right data, with clear examples and common pitfalls to avoid.