In the circular flow of income
A) households demand goods and services that are supplied by firms, and the firms demand factors that are supplied by intermediate firms.
B) households demand goods and services that are supplied by firms, while supplying factors that are demanded by firms.
C) households sell goods and services while firms sell factors.
D) households buy goods and services while firms sell goods and services. Firms obtain labor from households, capital from government, and raw materials from other firms.
B
You might also like to view...
The Nash equilibrium was named after
a. Tom Nash b. John Nash c. Robert Nash d. Kelvin Nash
Identify the correct statement about the aggregate supply curve
a. The aggregate supply curve is irrelevant for determining macroeconomic equilibrium. b. The aggregate supply curve shows the various quantities of a particular good that is produced in the economy. c. The aggregate supply curve shows an inverse relationship between price level and employment. d. The aggregate supply curve shifts inward with an increase in consumer spending, investment, government spending, and net exports. e. The aggregate supply curve relates total output in the economy to alternative price levels.