The equivalence of measuring GDP by spending, production, and income is guaranteed by
A) mathematical proof based on the character of a capitalist society.
B) mathematical identity based on accounting procedures.
C) deductive reasoning but only under the conditions of some fairly severe restrictive assumptions.
D) the accurate computation of the present value of current investment.
E) none of the above.

Question

Quizplus · Accepted Answer

The equivalence of measuring GDP by spending, production, and income is guaranteed by a mathematical identity based on accounting procedures. This identity ensures that the total value of production in an economy is equal to the total spending on that production, which in turn is equal to the total income generated from that production.

The Equivalence of Measuring GDP by Spending, Production, and Income