Question

The circular flow model of a mixed economy shows _____.


how taxes and profits are related


how government interacts with households and firms in the product and factor markets


only how firms and households interact


the physical flow and monetary flow between households and firms in both the product and factor markets
GPT-4o mini
The circular flow model of a mixed economy shows **the physical flow and monetary flow between households and firms in both the product and factor markets**. This model illustrates how goods and services flow between businesses and consumers, as well as how money flows in the opposite direction as payments for these goods and services. It also includes the role of the government in this flow.

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