41 the major lesson of the circular flow diagram is that
The Circular Flow Diagram is a model economists use to show the characteristics of and relationships that exist between households and businesses in the economy. Households, in the Resource Market (factor market), are the owners of the productive resources (factors of production) in the circular flow model. They sell their land, labor, capital ... the major lesson of the circular flow diagram is that. total income in the economy must always equal total spending. because production generates income and this income, in turn, generates expenditure, it is true that. both income and production approaches to measuring macroeconomic activity should yield the same results. 14) One major lesson that we learn from the circular flow diagram is that: A) saving must always be less than investment. B) taxes must always be greater than government expenditures. C) total income in the economy must always equal total spending. D) all of the above The major lesson of the circular flow diagram...