Which of the following is true regarding the circular flow diagram?
I. "Aggregate income" is the flow of income earned by firms.
II. Retained earnings are considered income earned by firms rather than part of households' incom
III. The government, households, and firms all operate in the financial market.
A) I only
B) I and III
C) I and II
D) III only
Correct Answer:
Verified
Q22: Q35: The circular flow diagram shows that Q36: GDP counts only final goods and services Q39: In the above figure, flow B represents Q41: Gross investment equals net investment plus Q42: According to the circular flow diagram, the Q43: Depreciation is Q44: Total output and total income in the Q45: Gross domestic product (GDP) is Q59: 
A) goods
A) depreciation.
B)
A) the decrease in the stock
A) the sum
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents