What does the simple circular-flow diagram illustrate?
A) that expenditure generates income so that income and the value of production are equal
B) that the economy's income exceeds its expenditure
C) that the expenditure of an economy exceeds its income
D) that money "flows" from households to firms and not the other way around
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
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
Q18: If GDP rises, what happens?
A) Income and
Q19: What is the relationship between income and
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