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Demand and the allocation of resources

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Reference no: EM131355302

Course is macroeconomics- ECO220-each question needs to be 1 page minimum.

1. Explain why there is a close relationship between supply, demand and the allocation of resources.

2. a. Explain why "circular flow" between the market for goods and services, the labor market and the money market are crucial for macro-economic equilibrium.

3. Explain why transfer payments are crucial to macro-economic equilibrium.

Reference no: EM131355302

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