The circular-flow diagram is a simple model of the 3. Which of the following is included in GDP? macroeconomy in which a. changes to inventories a. the flow of money into each market or sector exceeds b. intermediate goods the flow of money coming out of that market or c. used goods sector. d. financial assets (stocks and bonds) b. the value of stocks equals the value of bonds. e. foreign-produced goods c. households own the factors of production. 4. Which of the following is not included in GDP? d. there is only one household and one firm. a. capital goods such as machinery e. goods and services are sold in factor markets. b. imports GDP is equal to c. the value of domestically produced services a. the total value of all goods and services produced in d. government purchases of goods and services an economy during a given period. e. the construction of structures b. C+ I+ G+ IM. 5. Which of the following components makes up the large c. the total value of intermediate goods plus final percentage of GDP measured by aggregate spending? goods. d. consumer spending d. the total income received by producers of final goods b. investment spending and services. C. government purchases of goods and services