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Use the circular flow diagram to show how each of the following government actions simultaneously affects the allocation of resources and the distribution of income: a. The construction of a new high school. b. A 2 -percentage-point reduction of the corporate income tax. c. An expansion of preschool programs for disadvantaged children. d. The levying of an excise tax on polluters. | Numerade
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What is a circular-flow diagram, and what does it demonstrate?... | Filo
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Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services and the flow of dollars for each of the following activities.a. Selena pays a storekeeper $1 for a quart of milk.b. Stuart earns $8 per hour working at a fast-food restaurant.c. Shanna spends $40 to get a haircut.d. Salma earns $20,000 from her 10 percent ownership of Acme Industrial.
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