Watch Governments in the Circular Flow Households and firms pay taxes to governments. The green arrows running

Question:

Watch Governments in the Circular Flow Households and firms pay taxes to governments. The green arrows running directly from households and firms to governments show these flows. Also, governments make money payments to households and firms. The green arrows running directly from governments to households and firms show these flows. Taxes and transfers are direct transactions with governments and do not go through the goods markets and factor markets.

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

Step by Step Answer:

Related Book For  book-img-for-question

Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

Question Posted: