Total output equals total income

Name: Total output equals total income
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The statement "Total output equals total income" is a fundamental principle of national income accounting, which is represented in the income-expenditures diagram. In this diagram, total output is shown on the horizontal axis and total income on the vertical axis. The 45-degree line represents the equality of total output and total income, indicating that every dollar of output generates the same amount of income.

Total Output Equals Total Income