In the circular flow of payments model of the macroeconomy, ... households receive income from firms and the government. They also purchase goods and services from firms, and they pay taxes to the government. households receive payments from firms and the government for goods and services. They also pay wages, dividends, interest, and rents to firms as well as taxes to the government. governments are in charge of directing the production and consumption decisions of both firms and households; without this central direction, neither firms nor households would be able to allocate their scarce resources productively. foreign firms, households, and governments are unimportant.

In the circular flow of payments model of the macroeconomy, ... households receive income from firms and the government. They also purchase goods and services from firms, and they pay taxes to the government. households receive payments from firms and the government for goods and services. They also pay wages, dividends, interest, and rents to firms as well as taxes to the government. governments are in charge of directing the production and consumption decisions of both firms and households; without this central direction, neither firms nor households would be able to allocate their scarce resources productively. foreign firms, households, and governments are unimportant.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Gross Domestic Product

Section: Chapter Questions

Problem 7SQ

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