How Can the Circular Flow Model Be Used to Explain

question 5

Essay

How can the circular flow model be used to explain conceptually why GDP computed by the expenditure approach would be equal to GDP computed by the income approach?

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Definitions:

Standard Score

A statistical measure that expresses an individual's score relative to an average or mean score of a standardized test, often using a known standard deviation to scale the results.

WRAT

The Wide Range Achievement Test is a standardized test that assesses reading, spelling, and arithmetic skills.

Cognitive Ability Test

An assessment designed to measure mental capabilities such as logic, reasoning, and problem-solving.

No Child Left Behind Act

A U.S. Act of Congress that reauthorized the Elementary and Secondary Education Act; it included measures designed to close the achievement gap with accountability, flexibility, and choice, so that no child is left behind.