Sequence the following events related to the Circular Flow of Income:

  1. Firms produce goods and services.
  2. Households provide factors of production to firms.
  3. Households earn income and consume goods and services.
  4. Firms pay for the factors of production.

1
1 → 4 → 2 → 3
2

2 → 1 → 3 → 4

3

2 → 4 → 1 → 3

4
3 → 1 → 2 → 4

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