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andreyandreev [35.5K]
3 years ago
13

In a circular flow economy, firm supply

Social Studies
1 answer:
Bingel [31]3 years ago
4 0

Answer:

The circular flow diagram simplifies this to make the picture easier to grasp. In the diagram, firms produce goods and services, which they sell to households in return for revenues.  This is shown in the inner circle and represents the two sides of the labor market in which households supply and firms demand.

Explanation:

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