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The Circular-Flow Diagram Explains, in General Terms, How the Economy

question 145

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The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.


Definitions:

Homeostasis

The self-regulating process by which biological systems maintain stability while adjusting to conditions optimal for survival.

Car Seat

A safety seat designed specifically for children in vehicles, aimed at protecting young passengers during travel.

Arousal Theory

A theory suggesting that people are motivated to maintain an optimal level of arousal, which varies by individual.

Homeostasis

The process by which a living organism maintains stable internal conditions despite changes in its external environment.

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