Which of the following are equal to one another?
I. aggregate production
II. aggregate expenditure
III. aggregate income

Question

Quizplus · Accepted Answer

In macroeconomics, aggregate production, aggregate expenditure, and aggregate income are considered equal to one another in the context of the circular flow of income and expenditure. This concept is fundamental to national income accounting, where the total value of goods and services produced (aggregate production) in an economy is equal to the total amount spent on those goods and services (aggregate expenditure), which is also equal to the total income earned by the factors of production (aggregate income).

Which of the Following Are Equal to One Another