Use the diagram illustrating the US economy to answer the question. Expenditures Products Households Factors of Production Income A Product Market B Resource (Factor) Market Revenue Goods & Services Businesses Factors of Production Which statement about the relationships illustrated in the diagram are correct? Wages, Interest, Net Profit The inner arrows represent the impact of fiscal policy and the outer arrows represent the impact of monetary policy. The inner arrows represent the flow of money and the outer arrows represent the flow of products and resources. The inner arrows represent the flow of

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Use the diagram illustrating the US economy to answer
the question.
Expenditures
Products
Households
Income
Factors of
Production
A
B
Product
Market
Resource (Factor)
Market
Revenue
Goods &
Services
Businesses
Factors of
Production
Which statement about the relationships illustrated in the
diagram are correct?
Wages, Interest,
Net Profit
The inner arrows represent the impact
of fiscal policy and the outer arrows
represent the impact of monetary
policy.
The inner arrows represent the flow of
money and the outer arrows represent
the flow of products and resources.
The inner arrows represent the flow of
Transcribed Image Text:Use the diagram illustrating the US economy to answer the question. Expenditures Products Households Income Factors of Production A B Product Market Resource (Factor) Market Revenue Goods & Services Businesses Factors of Production Which statement about the relationships illustrated in the diagram are correct? Wages, Interest, Net Profit The inner arrows represent the impact of fiscal policy and the outer arrows represent the impact of monetary policy. The inner arrows represent the flow of money and the outer arrows represent the flow of products and resources. The inner arrows represent the flow of
Factors of
Production
Income
A
с
Resource (Factor)
Market
Which statement about the relationships illustrated in the
diagram are correct?
D
Factors of
Production
Wages, Interest,
Net Profit
The inner arrows represent the impact
of fiscal policy and the outer arrows
represent the impact of monetary
policy.
The inner arrows represent the flow of
money and the outer arrows represent
the flow of products and resources.
The inner arrows represent the flow of
products and resources and the outer
arrows represent the flow of money.
The inner arrows represent the impact
of monetary policy and the outer
arrows represent the impact of fiscal
policy.
Transcribed Image Text:Factors of Production Income A с Resource (Factor) Market Which statement about the relationships illustrated in the diagram are correct? D Factors of Production Wages, Interest, Net Profit The inner arrows represent the impact of fiscal policy and the outer arrows represent the impact of monetary policy. The inner arrows represent the flow of money and the outer arrows represent the flow of products and resources. The inner arrows represent the flow of products and resources and the outer arrows represent the flow of money. The inner arrows represent the impact of monetary policy and the outer arrows represent the impact of fiscal policy.
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