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Which of the following is NOT a way that the government enters into the circular flow model of the economy?

1.Electing presidents to control the price of gasoline
2.Purhasing land, labor, and capital in the factor market
3.Hiring civilians
4.Issuing social security, welfare, and unemployment payments

User Abhinav Saraswat
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1 Answer

5 votes
5 votes

Answer: key macroeconomic measures

Explanation:GDP can be measured in three different ways: the value added approach, the income approach (how much is earned as income on resources used to make stuff), and the expenditures approach (how much is spent on stuff). However, you will likely run into the expenditures approach the most as you progress through this course. A model called the circular flow diagram illustrates how the expenditures approach and the income approach must equal each other, with goods and services flowing in one direction and income flowing in the opposite direction, in a closed loop. government spending, exports, and imports: Y=C+I+G+X-MY=C+I+G+X−MY, equals, C, plus, I, plus, G, plus, X, minus, M.

User Paulo Sousa
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