Circular flow of Income (figure 2.1 gregory mankiw)

[Skywalker]

Excellent explanation thank you so much 🤝☺️

[DistributistHound]

Also land, labour and entrepreneurship combined make posible to produce goods however which one is able to pay for the total price of the goods? if the resulting merchandise is a combination of the three while the money paid is distributed amongst the three

[DistributistHound]

Thank you for the explanation, I have a question: is the flow of goods and services arithmetically the same to flow of dollars?
Question 2: is capital referring to money or capital goods?

The way I see this model is that there is a fixed amount of money I pay lets say 1million to make all the goods then everyone involved decides to buy all the goods so I get the million back, they make a second batch of goods and I sell it to them... something does check in my opinion.