When output exceeds planned expenditures, there is insufficient production in the economy

In the figure above, if Mac and Izzie both completely specialized and traded with one another, their joint output would be

A) 3 computers and 3 TV sets per month. B) 6 computers and 6 TV sets per month. C) 12 computers and 12 TV sets per month. D) 24 computers and 24 TV sets per month.

The circular flow diagram is best described as a(n)

a. abstraction of little value in macroeconomics. b. exact representation of the cause and effect relationship between spending and employment. c. model that clarifies the relationship between spending and income. d. model to explain the relationship between the federal deficit and tax revenues.