Multiple Choice
Because every transaction has a buyer and a seller,
A) GDP is more closely associated with a nation's income than it is with a nation'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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