Question

Fill in the Blanks:

In an economy as a whole, income must _______ expenditure.

A be more than Correct Answer Incorrect Answer
B be less than Correct Answer Incorrect Answer
C be equal to Correct Answer Incorrect Answer
D be equal or more than Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

GDPis a measure of the totalincomeof everyone in the economy AND the total expenditure on the economy's output of goods and services. In an economy as a whole, income must equal expenditure.GDPis computed as the "market value of all FINAL goods and services produced within an economy in a given period of time.

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