In a simple circular-flow diagram, how are total income and total expenditures in an economy interrelated?
A) They are equal because firms re-invest their revenue.
B) They are equal only if there is no saving.
C) They never equal because some people's income does not come from production activities.
D) They are equal because every transaction has a buyer and a seller.
Correct Answer:
Verified
Q3: Which of the following statistics is the
Q4: In order to include many different products
Q6: Which of the following questions is more
Q7: 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
Q12: Why is GDP computed using market prices
Q18: If GDP rises, what happens?
A) Income and
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