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SOLVED: The other options for the inputs:A: households or firmsB: factors or goods and services2. The circular-flow modelThe following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs.Markets for Goods and ServicesFirmsHouseholdsMarkets for Factors of ProductionBased on this model, firms earn revenue when firms purchase facto
SOLVED: The other options for the inputs:A: households or firmsB: fa…
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