What is circular flow in economics

Circular flow model in economics are basically flow of input (Resources) to output (Product). How these resources are utilize to produce a product. If these resources use optimal level to produce a product then economy gains maximum profit. This model includes producer, consumer and government. In the equilibrium market, producer produces output then in market these products are sell out to the government then to the consumer. Consumer pays cash to use that product. Then circular flow of input and output are possible.