The Circular Flow Shows That

question 2

Multiple Choice

The circular flow shows that

• A) aggregate production equals aggregate expenditure.
• B) aggregate expenditure is less than aggregate income.
• C) GDP equals aggregate income.
• D) Both answers A and C are correct.

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Definitions:

Stimuli

External or internal agents or factors that provoke a physiological or psychological response or action in an organism.

Bedtime Snack

A small meal or food item consumed shortly before going to bed, often aimed at preventing overnight hunger.

Hot Chocolate

A warm beverage made from cocoa powder, milk or water, and sugar, often enjoyed for its comforting and sweet taste.

Cereal With Milk

A common breakfast food consisting of grains served in a bowl with milk.