The Circular Flow Diagram Shows That

question 256

Multiple Choice

The circular flow diagram shows that

• A)the value of total income is equal to the total value of expenditures on final goods and services.
• B)firms pay households wages,and households receive transfer payments from firms.
• C)households spend all their income on goods and services.
• D)GDP will be less than the total value of expenditures on final goods and services in the economy.

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Definitions:

Military Industrial Growth

The expansion and strengthening of a nation's armed forces and related industries, often associated with increased production of military technology and equipment.

Technology Industry

A sector of the economy focused on the development, production, and marketing of computer software, hardware, and other electronic devices.

Good Neighbor Policy

A foreign policy adopted by the United States in the 1930s, aimed at strengthening friendly relations and mutual defense with the countries of Latin America.

Herbert Hoover's Policies

Involved a hands-off approach to the economy, emphasizing the importance of voluntary cooperation between businesses and workers rather than government intervention.