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History

2 answers:

zhannawk [14.2K]2 years ago

7 0

The correct answer is b) It shows the relationship between supply and demand.

The circular flow diagram is a model in economics that basically explains how the economy functions. The main characters are households which represent costumers and the firms which represent producers. Explains how the economics function in a circular way, where there has to be always a supplier and always a costumer, for there to be a flow and an equilibrium in the goods that are produced, and the goods that are demanded.

vazorg [7]2 years ago

4 0

Answer:

C) It shows how households and businesses interact in a market economy.

Explanation:

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