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

    GDP is a measure of the total income of 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. GDP is 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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