One of the most crucial ideas in macroeconomics is understanding that:
A) zero unemployment is the best way to achieve economic growth.
B) measuring total expenditures or total income both equal total production of an economy.
C) prolonging economic downturns can be prolonged by fiscal policy.
D) GNP is the most commonly used measurement of total production.

Question

Quizplus · Accepted Answer

This statement, known as the expenditure approach to measuring GDP, is a fundamental concept in macroeconomic analysis. It is important to understand that measuring production by either total expenditures or total income will yield the same result.

One of the Most Crucial Ideas in Macroeconomics Is Understanding