The diagram below illustrates the circular flow of income for a simplified two-sector closed economy with no government intervention.
Which of the following statements correctly identifies the National Income (GDP) measurement method corresponding to each labeled flow?
Flow P corresponds to the Income method, Flow Q corresponds to the Expenditure method, and Flow R corresponds to the Output method.
Flow P corresponds to the Output method, Flow Q corresponds to the Income method, and Flow R corresponds to the Expenditure method.
Flow P corresponds to the Expenditure method, Flow Q corresponds to the Output method, and Flow R corresponds to the Income method.
Flow P corresponds to the Income method, Flow Q corresponds to the Output method, and Flow R corresponds to the Expenditure method.