In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.
A)equals
B)is greater than
C)is less than
D)may be greater than or less than

Question

Quizplus · Accepted Answer

In the circular flow model, total production and total expenditures on final goods and services must balance each other out because every dollar spent by one person becomes income for another. Therefore, the value of total production for an economy equals the value of total expenditures on final goods and services.

In the Circular Flow Model,the Value of Total Production for an Economy