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1 vote
In the circular flow model businesses demand products and supply resources.

a. True
b. False

1 Answer

7 votes
This is false. In fact, in the circular flow model, it is the exact opposite for firms. These businesses supply products to the people buying them and demand resources (i.e., land, labor, capital) as a way of creating these products for the consumers.
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User DonSteep
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