The circular-flow diagram illustrates the growth of income inequality in Canada.

Question

Quizplus · Accepted Answer

The circular-flow diagram is a visual representation of the flow of goods, services, and money between households and firms in an economy. While it can illustrate various economic concepts, it does not specifically demonstrate the growth of income inequality in Canada or any other country. Income inequality can be measured and analyzed using other methods, such as income distribution data or Gini coefficients.

The Circular-Flow Diagram Illustrates the Growth of Income Inequality in Canada