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In the circular flow of expenditure and​ income, why must the total value of production in an economy equal the total value of​ income?

Respuesta :

ananso

Answer:

Because every transaction has a buyer and a seller

Explanation:

Because every transaction has a buyer and a seller, every penny spent on a good or service must end up as someone's income.

The economy seem to operate in a circular motion as illustrated in the circular flow diagram. Economists use this diagram to demonstrate how the economy of a nation operates, by demonstrating how money, services and goods navigate in the economy.  

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