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Figure below demonstrates a more developed version of the circular flow. In this figure we see how goods flow through various sectors of the economy.
Figure
Money in the circular flow
a small country produces 5000 units of output and has a money suplly of $2000. if citizens want to hold 10% of their income in money ie k=0.1 what are v, $gnp, p and real money sup
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Diagramatic explanation of pareto optimality
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