Choose one of the following questions.
Your responses should be 3-4 paragraphs in length. Each paragraph should have a minimum of 5-6 sentences.
1. Describe the circular flow of the Economy. Also describe in detail how each of the resources is used in the productive process. What do the owners of the resources receive in payment?
2. Describe how GDP is calculated by using the Net Expenditures approach. Analyze and define each of the components of GDP. Describe what type of goods and services are included and not included in the GDP calculation. How is GDP adjusted to reflect an inflation adjusted price?
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