MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 5, Problem 2SQP
To determine

Explain the reason for the value of business output of goods and services is equals the income of the households.

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Using the basic circular flow model, explain whythe value of businesses’ output of goods andservices equals the income of households.
The simple circular flow model shows that:         households are on the buying side of both product and resource                 markets.        businesses are on the selling side of both product and resource                   markets.        households are on the selling side of the resource market and on the           buying side of the product market.        businesses are on the buying side of the product market and on the             selling side of the resource market.
how to find gross investment in the economy? is it correct if i add Net investment to Capital Consumption? Gross Investment = Net investment + Capital Consumption
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