Which of the Following Are Separate Flows in the Circular

question 42

Multiple Choice

Which of the following are separate flows in the circular flow model?

• A)the flow of goods and the flow of services
• B)the flow of costs and the flow of revenue
• C)the flow of income earned from the sale of resources and the flow of expenditures on goods and services
• D)the flow of income received by households and the flow of tax revenues paid by households

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Definitions:

GDP

Gross Domestic Product is the cumulative market or monetary value of all completed goods and services generated inside a country's boundaries over a certain timeframe.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period, a primary measure of economic health.

Real GDP

Gross Domestic Product adjusted for inflation, reflecting the value of all goods and services produced by an economy in a given year at constant prices.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period, serving as a broad indicator of economic health.