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

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
May 26th, 2015
...
May 26th, 2015
Mar 29th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer