Using this outline, draw a circular-flow diagram representing the interactions between households and firms in a simple economy. Explain briefly the various parts of the diagram.
Figure 2-12 
Definitions:
Cognitive Psychologists
Scientists who study mental processes such as perception, memory, thought, problem-solving, and language.
Aggressive Behavior
Actions or attitudes that demonstrate hostility or an intention to harm someone else, physically or psychologically.
Implicit Social Norm
Unwritten rules within a society or group that dictate acceptable behavior without directly stating them.
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