In a circular-flow diagram, one loop shows the flow of real goods, services, and factors of production, and the other loop shows the corresponding flow of dollars.

Name: In a circular-flow diagram, one loop shows the flow of real goods, services, and factors of production, and the other loop shows the corresponding flow of dollars.
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Quizplus · Accepted Answer

This is an accurate description of a circular-flow diagram. The two loops represent the flow of economic activity and the flow of money.

In a Circular-Flow Diagram, One Loop Shows the Flow of Real