The equality between GDP and gross domestic income implies that income generated by final goods and services is equal to

Question

Quizplus · Accepted Answer

GDP is calculated by adding up expenditures on final goods and services, while gross domestic income is calculated by adding up all forms of income earned in the production of those goods and services. The equality between the two implies that the value of all final goods and services produced (as measured by GDP) is equal to the total income earned in their production (as measured by gross domestic income). Therefore, the correct answer is C, expenditures on final goods and services.

The Equality Between GDP and Gross Domestic Income Implies That