In the simple circular flow model, total income in the United States must equal
A) wages + rents + interest + profits.
B) the total monetary value of all final goods and services.
C) the yearly amount earned by our nation's resources.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

In the circular flow model, total income is represented by the sum of wages, rents, interest, and profits, which equals the total monetary value of all final goods and services produced, and also equals the yearly amount earned by the nation's resources.

In the Simple Circular Flow Model, Total Income in the United