The simplified circular flow model

Group of answer choices

demonstrates the relationship between the two markets (product market and resource market), the two flows (money flow and real flow of goods & services and resources), and the two agents (households and firms).

households own all resources and supply them to the firms through the resource market.

firms produce all the products (goods and services) and supply them to the households in the product market.

all of the above are correct.

none of the above are correct.

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