In the expanded circular flow diagram, the government supplies:
A. goods and services to the product market.
B. factors of production to the factor market.
C. goods and services to households.
D. factors of production to firms.
Answer: A
You might also like to view...
Which of the following is true of the segmented markets theory?
A) It assumes that borrowers have particular periods for which they want to borrow. B) It assumes that lenders always lend for short periods. C) It provides a good explanation for why yield curves usually slope upward. D) It assumes that instruments with different maturities are perfect substitutes.
Higher future living standards require:
A. reduced rates of current consumption. B. increased rates of current consumption. C. increased rates of population growth. D. reduced rates of current investment.
The value of M2 was
The Economic Report of the President estimated that for 1997, the US had the following money stock components (in billions): $426 in currency; $391.7 in checking account deposits; $8.2 in travelers checks; $242.8 in other checkable deposits; $963.7 in small denomination time deposits; $1395.4 in savings accounts; $591.5 in retail money market mutual funds; $579.2 in large time deposits; $235.9 in term repurchase agreements; $139.1 in Eurodollar accounts; and $359.5 in institutional money market mutual funds. a) $2454.1 b) $3417.8 c) $4019.3 d) $4958.0 e) $5333.0
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.