Because every transaction has a buyer and a seller, firms' profits are necessarily zero in a...

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

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