Which statements best describe parts of the circular flow of income? Choose three correct answers.Households sell goods and servicesHouseholds buy goods and services.Households provide labor.Businesses sell goods and services.Businesses provide labor.

In the circular flow, households provide labor to businesses and use the income they earn to buy goods and services. Businesses use labor to produce and sell those goods and services. So the correct statements are “Households buy goods and services,” “Households provide labor,” and “Businesses sell goods and services.”

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