In a Simple Circular-Flow Diagram, Total Income and Total Expenditure

question 221

Multiple Choice

In a simple circular-flow diagram, total income and total expenditure are

• A)never equal because total income always exceeds total expenditure.
• B)seldom equal because of the ongoing changes in an economy's unemployment rate.
• C)equal only when the government purchases no goods or services.
• D)always equal because every transaction has a buyer and a seller.

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