There are two types of flow(an amount per time period) between these groups: A real flow. Households own factor services which they hire out to firms. Factor services are then used to manufacture goods and services A money flow. Households receive payments for their services(income) and use this money to buy the output of firms(consumption)There are two types of flow (an amount per time period) between these groups: A real flow. Households own factor services which they hire out to firms. Factor services are then used to manufacture goods and services. A money flow. Households receive payments for their services (income) and use this money to buy the output of firms (consumption)