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An economy's income must be equal to it's expenditure because every transaction has a buyer and a seller. It is also because every dollar of spending by some buyer is a dollar of income for some seller. Gross domestic product (GDP) measures an economy's total expenditure on newly produced goods and services and the total income earned from the production of these goods and services.
Yes
An economy's income must equal it's expenditure to keep its budget in balance. If the income is less, it results in debt which eventually has to be paid back.
output(production) , income & expenditure .
For an economy as a whole, income must equal expenditure because:u Every transaction has a buyer and a seller.u Every dollar of spending by some buyer is a dollar of income for some seller.
An economy's income must be equal to it's expenditure because every transaction has a buyer and a seller. It is also because every dollar of spending by some buyer is a dollar of income for some seller. Gross domestic product (GDP) measures an economy's total expenditure on newly produced goods and services and the total income earned from the production of these goods and services.
Yes
An economy's income must equal it's expenditure to keep its budget in balance. If the income is less, it results in debt which eventually has to be paid back.
Savings are a leakage from the income expenditure stream because they drain on the economy
output(production) , income & expenditure .
For an economy as a whole, income must equal expenditure because:u Every transaction has a buyer and a seller.u Every dollar of spending by some buyer is a dollar of income for some seller.
(A)inadequate manpower in the economy(b)low level of production(c)low per capital income(d)increase in government expenditure
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1) Measure all of the income in an economy (wages, taxes, transfers, etc.). 2) Measure the value-added on goods (i.e.) the change in value when wood is turned into a chair). 3) Measure all expenditure (consumption, investment, government spending, etc.). All three of these methods are used in income accounting and should always end up with the same result. This is because all income in an economy must be expended and the value of the expenditure and income is equivalent to the value of production (value-added to goods).
Credit is neither an income or an expenditure. It becomes an expenditure when you use it. expenditure
income over expenditure is profitexpenditure over income is loss
the function that represents total spending in an economy at a given level of real disposable income.