Author Question: One of the major points of the circular flow diagram is: a. If GDP rises due to increased ... (Read 13 times)

saraeharris · **on:** Jun 30, 2018

One of the major points of the circular flow diagram is:
a. If GDP rises due to increased production, incomes earned from producing GDP must rise.
b. Increasing gross private domestic investment is the best way for a nation to grow.
c. Increasing government spending is the best way for a nation to grow.
d. The top and bottom flows are proof that most economies should always be in equilibrium.
e. None of the above.

Question 2

Which of the following is not included in a nation's balance of payments?
a. Imports and exports of services.
b. International interest and dividend earnings.
c. International gifts.
d. International loans.
e. All of the above are included in the balance of payments.