Question 46
National IncomeUse the above diagram to answer questions 46 to 48. The above diagram illustrates
- A.the circular flow of income
- B.gross national product plus depreciation
- C.incomes of the private sector
- D.the profit of business enterprises
- E.the output approach to national income determination.
Show the answer and explanation
Answer: A (the circular flow of income)
Explanation
The diagram shows money and real flows going round between households and firms: the circular flow of income.