Multiple Choice
Because every transaction has a buyer and a seller,
A) GDP is more closely associated with an economy's income than it is with an economy's expenditure.
B) every transaction contributes equally to an economy's income and to its expenditure.
C) the number of firms must be equal to the number of households in a simple circular-flow diagram.
D) firms' profits are necessarily zero in a simple circular-flow diagram.
Correct Answer:

Verified
Correct Answer:
Verified
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