Comparing aggregate expenditure and aggregate incomes shows that

Question

Quizplus · Accepted Answer

According to the national income accounting identity, aggregate expenditure and aggregate income must be equal in an economy. This means that every dollar spent by buyers must be received as income by sellers. Any discrepancy between aggregate expenditure and aggregate income would result in a surplus or deficit in the economy, which would have implications for economic growth and stability. Therefore, the correct answer is C, they are equal.

Comparing Aggregate Expenditure and Aggregate Incomes Shows That