Question

How to maintain the equilibrium in the circular flow of the economy

Answer 1

Answer:

To maintain equilibrium, it will be necessary for the quantity of goods and services produced within a location to be equal to the quantity of goods and services consumed in that location.

Explanation:

The circular flow in the economy reaches equilibrium when the demand and supply of a place are equal, that is, the quantity of goods and services produced is equal to the quantity of goods and services consumed. For this to happen within an economy, it is necessary for the productive sector to organize itself to provide services that allow the economic activity to be established in an identical way on a continuous basis.