In a simple circular-flow diagram,why is total income equal to total expenditure?
A) because firms re-invest their revenue
B) because savings are small
C) because income from interest is not part of GDP
D) because every transaction has a buyer and a seller
Correct Answer:
Verified
Q4: In order to include many different products
Q6: Which of the following questions is more
Q8: In an economy consisting of only households
Q9: How is GDP computed?
A)Add up the quantities
Q9: Why does expenditure equal income?
A) because firms
Q15: Which of the following topics are studied
Q16: Which of the following statistics is the
Q17: How should Robert's contributions to GDP be
Q18: If GDP rises, what happens?
A) Income and
Q19: What is the relationship between income and
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