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The Level of Economic Activity and the Size of the Circular

Question 212

Multiple Choice

The level of economic activity and the size of the circular flow would never change if:


A) there were no imports or exports.
B) government taxes equaled transfer payments to households.
C) the only spending in the economy were nonincome-determined spending.
D) the only spending in the economy were income-determined spending by households, and households spent all that they earned.

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