In a circular-flow diagram, which is true:

In a circular-flow diagram, which is true:

the economy is simplified to include only two types of decision makers - firms and households

In the markets for goods and services, households are buyers, and firms are sellers - the households purchase the goods and services that firms produce.

In the markets for production inputs, households are sellers, and firms are buyers - the households provide the inputs that firms use to produce goods and services

All of the above