Equilibrium income occurs where the value of production is equal to aggregate expenditures.

Name: Equilibrium income occurs where the value of production is equal to aggregate expenditures.
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Equilibrium income is the level of income where the value of production (output) is equal to aggregate expenditures (spending). This is achieved when there is no unplanned inventory accumulation or depletion, meaning that all goods produced are sold, and there is no excess supply or demand in the economy.

Equilibrium Income Occurs Where the Value of Production Is Equal