For the aggregate economy, income equals

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Quizplus · Accepted Answer

In the aggregate economy, expenditure represents the total amount spent on goods and services within an economy, while GDP represents the total value of goods and services produced within an economy. Therefore, if all goods and services produced are sold, then expenditure would equal GDP. This is because all spending on goods and services ultimately ends up becoming someone else's income, thereby completing the circular flow of income in the economy.

For the Aggregate Economy, Income Equals