Use the diagram below to explain in a how a nation's total spending, total income and the money value of what it produces are related to one another.

ly . Myth and Reality Figure 11 The Circular Flow of Goods and Money Markets for Outputs Sales receipts Expenditures Goods and servi Goods and services Households Businesses Labor, capital, etc. Labor, capital, etc. Wages, interest, etc. Incomes Markets for Inputs Although an increasing number of tasks seem to get assigned to the state each year, the traditional role of government in a market economy revolves around five jobs: . Making and enforcin