Question: 1 0. The circular flow model illustrates that the aggregate supply of goods ????nd services to households, businesses, governments, and foreigners and the aggregate income
1 0. The circular flow model illustrates that the aggregate supply of goods ????nd services to households, businesses, governments, and foreigners and the aggregate income of resource suppliers are merely alternative methods of viewing the same thing. Thus, actual aggregate output and actual aggregate income will always be equal. The only way in which we can increase aggregate income is by increasing the aggregate supply of goods desired by economic participants.
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