Goods and services between households and firms

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Reference no: EM13859471

Short essays. Answer each question as completely as possible:

1. Draw a simple circular flow diagram showing the flow of dollars, goods & services between households & firms. Explain why the dollar flow out of households and into businesses must be equal. Is the same true in the expanded circular flow? Explain.

2. Summarize the explanations for long-term growth. Why do they raise concerns about long-term growth in the U.S.?

Reference no: EM13859471

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