Chapter 8

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Which letter best represents the demand for factors of production in this circular flow model?

C

In the circular flow model, who supplies factors of production in exchange for income?

Households

Which measure of GDP represents changes in the quantity of goods and services produced in the economy, holding prices constant?

Real GDP

Gross domestic product is best defined as the:

market value of all final goods and services produced in a country during a period of time


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