In the Circular Flow Model,which of the Following Is on the Selling

question 13

Multiple Choice

In the circular flow model,which of the following is on the selling side in the goods market?

• A)Exporters
• B)Firms only
• C)Federal,state and local governments
• D)Households only
• E)Both firms and households

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Definitions:

Adverse Supply Shock

An Adverse Supply Shock is an unexpected event that reduces supply, leading to higher prices and lower quantities of goods available.

Internet Usage

Refers to the various activities and tasks performed by individuals or organizations over the internet, including communication, information search, entertainment, and e-commerce.

Favorable Supply Shock

An unexpected event that increases the supply of a good or service, leading to a lower price and benefitting consumers.

Natural Rate

The rate of unemployment when the labor market is in equilibrium, reflecting the number of people who are jobless due to the natural turnover in the workforce.