The figure below is a slightly-modified version of the circular flow diagram from Chapter 5. The arrows in this diagram represent the flow of money, but I want you to redraw the diagram by reversing the direction of all of the arrows and clearly labeling what real thing is flowing in the other direction. To be clear: there should not be any flows of money in your diagram; it should show the flow of goods and services or factors of production, etc. Make sure you label it clearly enough that I can tell that you know what real flow balances out the money flow in the original diagram.
The figure below is a slightly-modified version of the circular flow diagram from Chapter 5. The arrows in this diagram represent the flow of money, but I want you to redraw the diagram by reversing the direction of all of the arrows and clearly labeling what real thing is flowing in the other direction. To be clear: there should not be any flows of money in your diagram; it should show the flow of goods and services or factors of production, etc. Make sure you label it clearly enough that I can tell that you know what real flow balances out the money flow in the original diagram.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The figure below is a slightly-modified version of the circular flow diagram from Chapter 5. The arrows in this diagram represent the flow of money, but I want you to redraw the diagram by reversing the direction of all of the arrows and clearly labeling what real thing is flowing in the other direction. To be clear: there should not be any flows of money in your diagram; it should show the flow of goods and services or factors of production, etc. Make sure you label it clearly enough that I can tell that you know what real flow balances out the money flow in the original diagram.
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