Question: Why does GDP equal aggregate income and also equal aggregate expenditure? GDP equals aggregate income and also equals aggregate expenditure because q , . A
Why does GDP equal aggregate income and also equal aggregate expenditure?
GDP equals aggregate income and also equals aggregate expenditure because
A labor produces final goods and all purchases in the economy are purchases of final goods
B aggregate income measures profit as net profit and aggregate expenditure measures investment as net investment
C the Department of Commerce has defined GDP in such a way that it can be calculated by either summing total income or by summing total expenditures
D firms pay out as incomes aggregate income everything they receive from the sale of their output aggregate expenditure
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