What macroeconomic sector does the cycle start with?

In the economy of any state, two sectors constantly interact: household and business (in some textbooks the term “firms” is used). Commodity and cash flows function between these sectors, and relationships are formed. The functions of regulating these interrelationships, maintaining the balance, must and is performed by the state. The cycle begins with the actions of the household. It is the household that creates the demand, on the basis of which the business develops. Households provide the business with labor. Demand creates supply, production is ensured, and then the sale of the produced product.

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