For an economy,expenditure is equal to income because

Question

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Expenditure in an economy is equal to income because for every sale there is a buyer and a seller. This means that when someone spends money on a good or service, that expenditure becomes someone else's income. For example, when a consumer buys a product from a business, the business earns income from the sale which can then be used to pay their employees or invest in their business. Thus, the total amount spent in an economy is equal to the total income earned by all individuals and businesses in that economy. The other options are incorrect as they do not accurately explain why expenditure is equal to income in an economy.

For an Economy,expenditure Is Equal to Income Because