The simple circular flow diagram shows that economic aggregates can be calculated either by the _____ flows in the product market or by the _____ flowing to households in the resource market.
A) spending; income
B) income; spending
C) output; spending
D) spending; output

Question

Quizplus · Accepted Answer

The simple circular flow diagram illustrates that economic aggregates can be calculated by tracking the spending flows in the product market (where goods and services are bought) or by tracking the income flows to households in the resource market (where households receive income for providing labor, land, and capital).

The Simple Circular Flow Diagram Shows That Economic Aggregates Can