Which of the following statements about national- income accounting is correct?

Question

Quizplus · Accepted Answer

National-income accounting is a way of measuring a country's economic performance. According to the expenditure approach, GDP can be calculated by adding up all the spending on final goods and services produced within a country's borders. On the other hand, according to the income approach, GDP can be calculated by adding up all the income generated by the production of goods and services. These two approaches are equal, and this is known as the circular flow of income and expenditure. Therefore, the value of the expenditure on a nation's output is equal to the total income claims generated by producing that output.

Which of the Following Statements About National- Income Accounting Is