THE CIRCULAR FLOW MODEL. Complicating the Model. 1. Goods and services flow from a. firms to households via the factor market b. firms to households via the product market c . households to firms via the government d. households to firms via the factor market
THE CIRCULAR FLOW MODEL
1. Goods and services flow from
2. The factors of production flow from
3. The money paid to households via the factor market is called
4. The money paid to firms via the product market is called
5. The money paid by households and firms to the government is called
AVG. LABOR = TOTAL OUTPUT (GDP)
PRODUCTIVITY TOTAL # OF WORKERS
2. Which of the following is NOT a component of GDP in the expenditure approach?
3. Which category makes up the largest share of the United States’ GDP?
4. Which of the following is adjusted for inflation (changes in prices from year to year)?
5. Economic growth is measured by
6. We don’t count the value of intermediate goods in GDP because