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The basic circular flow model, explain why the value of businesses

Question # 00578135
Subject: Economics
Due on: 08/24/2017
Posted On: 08/24/2017 08:59 AM

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Circular flow model, GDP, Business Cycles and Unemployment


1. Using the basic circular flow model, explain why the value of businesses' output of goods and services equals the income of households.

Suppose the U.S. nominal GDP increases form one year to the next year. Can you conclude that these figures present a misleading measure of .com/education/social-economic-status">economic growth? What alternative method would provide a more accurate measure of the rate of growth?

2. What is the basic cause of the .com/business">business cycle?

How does structural .com/economics/unemployment">unemployment differ from cyclical unemployment?

Tags value businees explain model circular flow basic unemployment basic measure circular growth year flow busine model method alternative misleading economic provide cause structural differ cyclical does cycle rate present accurate increases businees output goods value explain cycles

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