The circular flow model asserts that government generates wealth and parcels it out to consumers.

Name: The circular flow model asserts that government generates wealth and parcels it out to consumers.
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The circular flow model describes how money moves through an economy between households, businesses, and the government, but it does not claim that the government generates wealth. Instead, it shows how these entities interact and exchange resources, goods, and services.

The Circular Flow Model Asserts That Government Generates Wealth and Parcels