Refer to Figure 1. The figure represents a circular-flow diagram. Boxes C and D represent

a. households and government. 

b. firms and government. 

c. the markets for goods and services and the financial markets. 

d. None of the above are correct.


Ans: d. None of the above are correct.

Economics

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The salary of the president of the United States in 2000 was $400,000. In 1940, the president's salary was $75,000. If the Consumer Price Index was 8.1 in 1940 and 100 in 2000, the 1940 presidential salary measured in terms of the purchasing power of the dollar in 2000 would be:

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Economics