A circular flow diagram shows the flows from the goods and resources markets

Government spending that redistributes income from taxpayers to other groups in the society is

a. a transfer payment b. a subsidy c. a public good d. a merit good e. an equity good

The rate of unemployment when the economy is at its potential output is called the:

a. Structural rate of unemployment b. Frictional rate of unemployment c. Natural rate of unemployment d. Full-employment rate of unemployment