In the circular flow model, the value of total production for an economy ________ the value of total expenditures on final goods and services.

QUESTION

In the circular flow model, the value of total production for an economy ________ the value of total expenditures on final goods and services.

1. is greater than
2. is less than
3. may be greater than or less than
4. equals

ANSWER

The correct option is 4. equals.