How does the circular flow model help people see the error in believing there is a fixed lump of labor?

A. Adding new people into the model means they can only have a job if they take it from someone else. So, there are more households, not more jobs.

B. Adding new people into the model means that there are more firms and production increases. So, there are more goods and services, but not more households.

C. Adding new people into the model increases the supply of labor and increases the demand for goods and services.

D. Adding new people into the model does not change the demand for goods and services; it only changes the supply of labor.