In a circular-flow diagram,one loop shows the flow of goods,services and factors of production,and the other loop shows the corresponding flow of dollars.

Question

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This is the correct description of a circular-flow diagram, where one loop represents the flow of goods, services, and factors of production, while the other loop shows the flow of income and expenditures (represented by dollars).

In a Circular-Flow Diagram,one Loop Shows the Flow of Goods,services