The circular-flow diagram illustrates that:
A) production generates income so that income and production are the same.
B) the economy's income is less than its production.
C) the economy's income is exceeds its production.
D) none of the above are necessarily correct.
A
You might also like to view...
Cartels are legal in the United States
a. True b. False Indicate whether the statement is true or false
Using the aggregate demand and supply model, expansionary fiscal policy will not affect the price level, but will restore full-employment GDP
a. True b. False Indicate whether the statement is true or false
In the markets for goods and services in the circular-flow diagram, households are buyers and firms are sellers
a. True b. False Indicate whether the statement is true or false
The change in capital stock in a period is equal to
A. the ratio of the amount of the capital at the beginning of the period to the amount of depreciation. B. the amount of the capital at the beginning of the period minus net investment. C. the amount of the capital stock at the beginning of the period plus gross investment minus depreciation. D. the amount of the capital at the beginning of the period plus gross investment.