The Circular Flow Model Shows the Flow of

question 139

Multiple Choice

The circular flow model shows the flow of

• A)goods markets and factor markets as they move through the economy.
• B)only funds in stock and bond markets.
• C)expenditure and income throughout the economy.
• D)only money throughout the economy.
• E)only tax payments and government expenditures.

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Definitions:

Aggregate Demand Curve

A graph representing the total demand for goods and services within an economy at various price levels.

Government Spending

The total amount of public expenditure by government agencies and institutions.

Great Depression

A severe worldwide economic depression in the 1930s, marked by high unemployment, deflation, and significant declines in economic activity.

Aggregate Demand

The total demand for all goods and services in an economy at various price levels, at a given point in time.