Problem
Answer the following questions in 250+ words total after you have read about the Circular Flow Model and watched the video and lyrics.
A. How can we use the circular flow model to explain what happened in Allentown? Explain the step-by-step process of what happened in Allentown according to the circular flow model of income and spending with reference to the song/video and the model. (Discuss the relationship between households, firms, resource markets and product markets as per the model).
B. Explain in detail how the COVID-19 global pandemic affected the Circular Flow of Spending and Income in the United States in detail.
C. What changes do you expect in the Circular Flow of Income and Spending over the next year in the U.S.?
D. How important is the relationship between households and firms in the economy according to what you have learned in the Circular Flow Model of Income and Spending?