Author Question: In the circular flow model, households A) spend earnings from resource sales on goods and ... (Read 106 times)

kellyjaisingh · **on:** Jun 29, 2018

In the circular flow model, households

A) spend earnings from resource sales on goods and services in the product market.
B) and firms spend earnings from resource sales on goods and services in the factor market.
C) sell goods and services in the input market.
D) hire resources sold by firms in the factor market.

Question 2

If inflation falls from 11 to 5, there is deflation.

Indicate whether the statement is true or false