Using the outline below, draw a circular-flow diagram representing the interactions between households and firms in a simple economy. Explain briefly the various parts of the diagram. 
Definitions:
Expected Frequency
The predicted count of occurrences or the number of times an outcome is anticipated to happen in a statistical experiment.
Normal Distribution
A probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.
Interval
A range of numbers between two specified limits.
Test Statistic
A standardized value calculated from sample data during a hypothesis test; used to determine the probability of observing the test results under the null hypothesis.
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