Which of the following statements is true?
A)Total expenditures and total income are the same measures of economic activity.
B)The product,income,and expenditure approaches must generate the same answer to the measure of economic activity.
C)The fundamental identity of national income accounting states that the GDP measured by the expenditure,income,and product approaches must be identical.
D)All of the above.

Question

Quizplus · Accepted Answer

The fundamental identity of national income accounting states that GDP measured by the expenditure, income, and product approaches must be identical, as they are different ways of measuring the same economic activity.

Which of the Following Statements Is True