Total output and total income in the simple circular flow model
A)are measures of the economy's level of savings.
B)include only intermediate goods.
C)are equal to each other.
D)are related in the sense that national income is less than national product.

Question

Quizplus · Accepted Answer

In the simple circular flow model, all goods and services produced in the economy generate an equivalent flow of income. This means that total output and total income are equal to each other.

Total Output and Total Income in the Simple Circular Flow