Describe the circular flow diagram. Why must all income equal spending in the economy?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Core Macroeconomics

ISBN: 978-1464191435

3rd edition

Authors: Eric Chiang

See More Books

Question Posted: Dec 08, 2015 05:45 AM

See More Questions

What would the circular flow diagram look like in an economy with no government? Draw one for yourself.
1. The circular flow describes the process by which GDP generates____, which is spent on goods and services. 2. Labor and capital are exchanged in _________markets. 3. Which government department...
Use the circular flow diagram to show how each of the following government actions simultaneously affects the allocation of resources and the distribution of income: a. The construction of a new high...
Suppose you needed a material that could absorb heat without having its temperature increase very much. Would you choose aluminum or water? Make sure your explanation uses the concept of specific...
What geographical units within a metropolitan area are useful for sampling?
Why do investors typically accept a lower risk-adjusted rate of return on debt capital than equity capital? Suppose a stable, financially healthy, profitable, tax-paying firm that has been financed...
1. The gain or loss on the constructive retirement of $400,000 of Sun bonds on January 2, 2016, is reported in the consolidated income statement in the amount of: a $27,000 b $23,000 c $21,000 d...
The demand for subassembly S is 100 units in week 7. Each unit of S requires 1 unit of T and 2 units of U. Each unit of T requires 1 Unit of V, 2 units of W, and 1 unit of X. Finally, each unit of U...
You can find current bond prices at: http://finra-markets.morningstar.com/BondCenter/ You want to find the bond prices and yields for bonds issued by Georgia Pacific. You can enter the ticker symbol...
What are the major causes of information risk? How can information risk be reduced?
What is a key problem with the way the NBER dates recessions and recoveries?
Why does GDP accounting include only the final value of goods and services produced? What would be the problem if intermediate products were included?
What are the determinants of information system effectiveness? LO8
From the following electrochemical cells write: (a) the electrode half reactions for oxidation and reduction (b) the overall cell reaction (c) the NERNST equation for the emf for each of the cells...
Use the range rule of thumb to identify the values that are significantly low, the values that are signficantly high, and the values that are neither significantly low nor significantly high. A test...
On January 1, Year 1, Handy Company (Handy) purchased 70% of the outstanding common shares of Dandy Limited (Dandy) for $11,900. On that date, Dandys shareholders equity consisted of common shares of...
CarFind Inc. showed the following equity information at December 31, 2019. Common shares, unlimited shares authorized; 4,900,000 shares issued and outstanding Retained earnings $1,045,000 1,385,000...
Cell Phone Radiation Listed below are the measured radiation rates (in W/kg) corresponding to these cell phones: iPhone X, iPhone 7, Google Pixel, Samsung Galaxy 58, OnePlus 5, Motorola VE465, LG G3,...
The acronym ETL, in the process of readying data for use in data analysis, refers to what three words? a. Extrapolate, transform, and learn b. Extrapolate, transpose, and load c. Extract, transform,...
Experiment: Tossing four coins Event: Getting three heads Identify the sample space of the probability experiment and determine the number of outcomes in the event. Draw a tree diagram when...
At what percentile is Middle Tennessee State University for proportion of part-time undergraduate enrollment? Use the data in "TNSchools" (https://openstax.org/r/Chapter8 Data-Sets), which has data...
What is a Phillips curve? Why did it seem to work so much better in the period from 1954 to 1969 than it did in the 1970s?
Explain why expectations of inflation affect the wages that result from labor-management bargaining.
What is meant by rational expectations? Why does the hypothesis of rational expectations have such stunning implications for economic policy? Would believers in rational expectations want to shorten...
The major justification for adding Step 0 to the U.S. GAAP impairment test for goodwill and indefinite lived intangibles is that it: A. Saves money spent estimating fair values B. Results in more...
Regarding research and experimental expenditures, which of the following are not qualified expenditures? 3 a. costs of ordinary testing of materials b. costs to develop a plant process c. costs of...
Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting...

Describe the circular flow diagram. Why must all income equal spending in the economy?

Question:

Step by Step Answer:

The circular flow diagram shows how the product and factor markets interact to p...View the full answer

Core Macroeconomics

Students also viewed these Economics questions