The unending nature of the circular flow means that economic activities in an economy:
AStop every few years
BCan never come to a halt
CDepend only on exports
DAre steadily shrinking
Answer & Solution
Correct answer: B. Can never come to a halt
Production, income and expenditure feed into one another continuously, so the process does not stop.
Keep practising Determination of National Income
Browse all Determination of National Income questions for CA Foundation, or explore more Business Economics topics.
Related questions
Which theory of consumption did Modigliani and Brumberg propose in 1954?Which consumption theory is Milton Friedman's (1957)?Who introduced the consumption function into macroeconomics in 1936?The consumption function describes the relationship between consumption and what?In which decade was the modern theory of the multiplier developed by Kahn, Keynes and otheA plot of a variable's response to a shock over time t, t+1, t+2 is called:In the open-economy multiplier formula, the symbol m stands for the propensity to:Paul Samuelson credited which economist for inspiring his 1939 multiplier-accelerator mode