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This study guide covers the circular flow model, explaining the flow of money, goods, and services between households and firms within the product and factor markets. It also covers Gross Domestic Product (GDP), including the expenditure and income approaches to calculation, what's included and excluded from GDP, and provides practice problems and examples for both concepts.
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Question 1 of 12
In the circular flow model, who are the main participants? 👨👩👧👦
Government and banks
Households and firms
Consumers and government
Firms and banks