Question: 1. What does the simple circular-flow diagram illustrate? a. that expenditure generates income so that income and the value of production are equal b. that

1. What does the simple circular-flow diagram illustrate? a. that expenditure generates income so that income and the value of production are equal b. that the economy's income exceeds its expenditure c. that the expenditure of an economy exceeds its income d. that money "flows" from households to firms and not the other way around

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