Economics 9708 · AS & A Level · Perfect competition

Perfect competition — practice question

According to the circular flow of income, what condition must exist for an open economy to be in equilibrium?

  • AGovernment investment is equal to private investment.
  • BPlanned injections are equal to planned withdrawals.
  • CSpending by households is equal to taxes collected by government.
  • DValue of export earnings is equal to expenditure on imports.

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