Author Question: The circular flow model illustrates that aggregate spending in the product markets equals 70 percent ... (Read 71 times)

xclash · **on:** Jun 30, 2018

The circular flow model illustrates that aggregate spending in the product markets equals 70 percent of aggregate income earned in the factor markets.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Which of the following characterizes the classical view of the economy?
a. The economy is inherently unstable.
b. Prices and wages are not flexible.
c. The economy will self-adjust to full employment.
d. None of these.