Principles of Macroeconomics 7th Edition

Published by South-Western College
ISBN 10: 1-28516-591-8
ISBN 13: 978-1-28516-591-2

Chapter 10 - Measuring a Nation's Income - Questions For Review - Page 214: 1

Answer

In an economy the expenditures must equal the income. As buyers purchase products the sellers receive this in income so for every transaction this process occurs resulting in expenditures equal to income.

Work Step by Step

With every purchase by buyers sellers receive this money in revenue which in turn can be broken down to income and profit but nonetheless it is equal to expenditures.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.