Answer: They are all equal. The value of production, which is GDP, equals income because firms pay factors (as income) all the revenue they receive from selling the goods and services they produce (GDP). Next, the revenue that firms receive from selling the goods and services they produce (GDP) is equal to what is spent as expenditures on the goods and services. (total expenditure).
Answer: They are all equal. The value of production, which is GDP, equals income because firms pay factors (as income) all the revenue they receive from selling the goods and services they produce (GDP). Next, the revenue that firms receive from selling the goods and services they produce (GDP) is equal to what is spent as expenditures on the goods and services. (total expenditure).
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