Which model depicts the interactions between different groups within an economy?

The Circular Flow Model effectively illustrates the interactions between various groups within an economy, such as households, businesses, and the government. It demonstrates how these entities exchange resources, goods, and services, highlighting the continuous movement of income and expenditure. The model shows that households provide factors of production (like labor) to businesses in exchange for wages, while businesses produce goods and services that households consume, creating a cyclical flow.

In addition to capturing the basic transaction mechanics, the Circular Flow Model can also include elements like the financial sector and government interventions, making it a comprehensive depiction of economic interactions. This model is particularly useful for understanding how different economic players are interconnected and how they affect overall economic activity.

The other models mentioned focus on specific aspects of economic activity or the behavior of markets, rather than the comprehensive interactions between groups.