Which of the Following Statements About the Circular-Flow Diagram Is

question 227

Multiple Choice

Which of the following statements about the circular-flow diagram is correct?

• A)One must imagine that the economy operates without money in order to make sense of the diagram.
• B)The diagram leaves out details that are not essential for understanding the economic transactions that occur between households and firms.
• C)The government cannot be excluded as a decision maker in a circular-flow diagram.
• D)All of the above are correct.

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The set of data or answers collected from subjects in an experiment or survey.

Hypothesis Test

A statistical method that uses sample data to evaluate a hypothesis about the properties of a population.

Significance Level

A threshold used in hypothesis testing that determines the probability at which the null hypothesis is rejected in favor of the alternative hypothesis.

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