The circular flow model illustrates the crucially important idea of macroeconomics, which is that:
A. every expenditure of someone in the economy is exactly equal to the income of another.
B. only two markets exist in every economy—input and output.
C. income is lower when there is more spending on goods and services.
D. the flow of two things in the economy—"stuff" and "money"—travel in the same direction.
Answer: A
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