In a simple circular-flow diagram, why is total income equal to total expenditure?
A) because firms re-invest their profits
B) because savings are small
C) because income from interest is not part of GDP
D) because every transaction has a buyer and a seller
Correct Answer:
Verified
Q1: In a simple circular-flow diagram, how are
Q2: How is GDP computed?
A) add up the
Q4: According to the simple circular-flow model, what
Q5: In order to include many different products
Q6: What does the simple circular-flow diagram illustrate?
A)
Q7: Which of the following is the best
Q8: What is the goal of macroeconomics?
A) to
Q9: Why does expenditure equal income?
A) because firms
Q10: Which market is the model of supply
Q11: Which question is more likely to be
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents