What does the simple circular-flow diagram illustrate? Question 6 options: a) that the economy's income exceeds its expenditure b) that expenditure generates income so that income and the value of production are equal c) that factors of production "flow" from firms to households d) that money "flows" from households to firmsWhat is the goal of macroeconomics? Question 7 options: a) to explain market failures, such as externalities and monopoly b) to explain changes that affect the economy as a whole c) to explain how economic changes affect prices of particular goods d) to explain how an income tax influences a person's decision to work