Which of the following statements regarding this economic model are true? Because, in reality, the economy is very large, the simplicity of the circular-flow diagram makes it useless for the purposes of modeling how dollars and resources move throughout an economy Because it does not take into account the role of government, the circular-fow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy. While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy Because it does not take into account international trade, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy.

Which of the following statements regarding this economic model are true? Because, in reality, the economy is very large, the simplicity of the circular-flow diagram makes it useless for the purposes of modeling how dollars and resources move throughout an economy Because it does not take into account the role of government, the circular-fow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy. While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy Because it does not take into account international trade, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter2: Economic Tools And Economic Systems

Section: Chapter Questions

Problem 3.7P

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