In a simple circular-flow diagram, how are total income and total expenditure interrelated?
A) They are seldom equal because of the dynamic changes that occur in an economy.
B) They are equal only when all goods and services produced are sold.
C) They are always equal because every transaction has a buyer and a seller.
D) They are always equal because of accounting rules.
Correct Answer:
Verified
Q2: What does the simple circular-flow diagram illustrate?
A)that
Q3: Which of the following statistics is the
Q4: In order to include many different products
Q6: Which of the following questions is more
Q8: In a simple circular-flow diagram, how are
Q9: Why does expenditure equal income?
A) because firms
Q9: How is GDP computed?
A)Add up the quantities
Q10: For which of the following purposes do
Q12: Which of the following headlines would be
Q18: If GDP rises, what happens?
A) Income and
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