63.In the resource market, how do households and firms interact with each other?
64.In the circular-flow model, what does the flow of expenditures measure?
65.What is the function of the circular flow model?
66.Which of the following is the largest component of GDP?(A) investment (I)(B) government spending (G)(C) consumption (C)(D) net exports (X ?2- M)Answer : (C)
67.Suppose that the economy is in equilibrium, with a trade surplus and with investment greaterthan saving. According to the circular-flow model, what is the state of the government's budget?