The circular flow diagram validates the fact that the different sectors in the economy are independent.

Name: The circular flow diagram validates the fact that the different sectors in the economy are independent.
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The circular flow diagram shows the interdependence between different sectors in the economy, rather than their independence. For instance, households supply labor to businesses in return for income, which they use to purchase goods and services from businesses, and so on.

The Circular Flow Diagram Validates the Fact That the Different