Aggregate income equals:
A)the sum of income earned by all laborers in the world economy.
B)the sum of income earned by all workers in the private sector.
C)the sum of the income earned by all the resource suppliers in an economy.
D)the total income of all employees after payment of income tax.
E)the total income of all employees after purchases of necessities.

Question

Quizplus · Accepted Answer

Aggregate income is the sum of income earned by all resource suppliers in an economy, including both labor and capital. Option A only includes income earned by laborers, while B only includes income earned by workers in the private sector. Option D refers to net income after taxes, while option E is irrelevant to the definition of aggregate income.

Aggregate Income Equals