Which of the following statements is true about the circular flow ........

Economics- Phase (I & II) National Income Accounting

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Which of the following statements is true about the circular flow?`

Output is greater than income

Income is more than expenditure

Output is less than expenditure

Output equals income equals expenditure

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Explanation:

The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. between economic agents. The flows of money and goods exchanged in a closed circuit correspond in value, but run in the opposite direction.