Total spending will equal total output
A) after inventory adjustments
B) only when total leakages are equal to total injections
C) by the end of every year
D) only when the sum of saving and investment equals the sum of net taxes and government expenditures
E) saving is equal to net taxes

Question

Quizplus · Accepted Answer

Total spending equals total output when total leakages (savings, taxes, imports) are equal to total injections (investment, government spending, exports) in the economy.

Total Spending Will Equal Total Output