In a simple circular-flow diagram, how are total income and total expenditure interrelated?
A) They are seldom equal because of fluctuations in the business cycle that occur in an economy.
B) They are equal only when all goods and services produced are sold.
C) They are always equal because every transaction has a buyer and a seller.
D) They are always equal because of accounting rules.
Correct Answer:
Verified
Q2: How is GDP computed?
A) add up the
Q3: In a simple circular-flow diagram, why is
Q4: According to the simple circular-flow model, what
Q5: In order to include many different products
Q6: What does the simple circular-flow diagram illustrate?
A)
Q7: Which of the following is the best
Q8: What is the goal of macroeconomics?
A) to
Q9: Why does expenditure equal income?
A) because firms
Q10: Which market is the model of supply
Q11: Which question is more likely to be
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