MACROECONOMICS
MACROECONOMICS
14th Edition
ISBN: 9781337794985
Author: Baumol
Publisher: CENGAGE L
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Chapter 8, Problem 2DQ
To determine

To describe: The circular flow diagram that look like in an economy with no government and to draw a new one.

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Homework (Ch 02) The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Markets for Goods and Services Firms Households Markets for Factors of Production purchase in product markets. Based on this model, firms earn revenue when Suppose Lucia earns $550 per week working as a corporate attorney for Rowan and Martin Associates. She uses $10 to buy a box of aspirin at Pillmart F11 F12 F7 F10 F8 F9 26 2 Fn Lock
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