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Economics A Level (DONEEEEEEE)

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Question:

Briefly Explain the Simple Income Flows between Firms and Households

Author: eric_galvao



Answer:

-Economies are Made Up of Firms and Households-Firms Produce Goods that makes the National Output -Households will provide the Land, Labour an Capital that Firms will use to make the National Output. Firms give 'Compensation' in the National Income-Households, with their National Income, will Spend on the Goods that the Firms make, the National Expenditure


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-Economies are Made Up of Firms and Households-Firms Produce Goods that makes the National Output -Households will provide the Land, Labour an Capital that Firms will use to make the National Output. Firms give 'Compensation' in the National Income-Households, with their National Income, will Spend on the Goods that the Firms make, the National Expenditure
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