In the short run,
A) spending depends on income and income depends on spending
B) spending depends on income,but income does not depend on spending
C) income depends on spending,but spending does not depend on income
D) spending and income are independent of one another
E) spending is the only determinant of how much income an economy will produce

Question

Quizplus · Accepted Answer

In the short run, there is a circular flow where spending depends on income and income depends on spending, creating a feedback loop.

In the Short Run