In an answer of at least two well-developed paragraphs, explain how the governme

Economics
Tutor: None Selected Time limit: 1 Day

In an answer of at least two well-developed paragraphs, explain how the government is involved in the circular flow of money and the circular flow of products.

May 26th, 2015

When the government is involved a new aspect is added to the market. firstly it changes from a Free Market to a Open Economy. The government gives out transfer payments to households and subsidies to firms while collecting taxes from both. Also directly to the resource market the government has expenditures and receive land, labor, capitol, and rent. ability. While in the product market they have more expenditures and receive goods and services.


May 26th, 2015

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May 26th, 2015
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May 26th, 2015
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