Economics 9708 · AS & A Level · Aggregate demand and aggregate supply

Aggregate demand and aggregate supply — practice question

The diagram illustrates a simple two-sector circular flow of income. What conclusion can be drawn about the direction of the flows?

  • AConsumer expenditure flows anticlockwise.
  • BGoods and services flow clockwise.
  • CIncomes flow anticlockwise.
  • DResources flow anticlockwise.

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