In the circular-flow diagram, households and firms are the decision makers.

Name: In the circular-flow diagram, households and firms are the decision makers.
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Question

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In the circular-flow diagram, households provide factors of production to firms and consume goods and services produced by firms, while firms produce goods and services and hire factors of production from households, making both key decision makers in the economy.

In the Circular-Flow Diagram, Households and Firms Are the Decision