What Are the Four Sectors in a More Complex Circular-Flow

question 123

Multiple Choice

What are the four sectors in a more complex circular-flow diagram?

• A) households, government, financial markets, and international trade
• B) households, firms, government, and financial markets
• C) households, firms, financial markets, and international trade
• D) households, firms, government, and international trade

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Definitions:

Real GDP

The measure of a nation's economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.

GDP

Gross Domestic Product is the cumulative market or monetary value of all completed goods and services generated inside a country's boundaries over a certain timeframe.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period, a primary measure of economic health.

Real GDP

Gross Domestic Product adjusted for inflation, reflecting the value of all goods and services produced by an economy in a given year at constant prices.