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Circular Flow Diagram
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Problem 10
Circular Flow Diagram
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1. Introduction to Macroeconomics / Circular Flow Diagram / Problem 8
Problem 8
Why is the circular flow diagram significant in understanding economic interactions?
A
It determines the level of government intervention in the economy.
B
It illustrates the continuous flow of resources and money between households and firms.
C
It predicts future economic trends.
D
It shows the relationship between supply and demand.
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