Why must the value of total expenditure equal the value of total income.
Why must the value of total expenditure equal the value of total income.
Homework Answers
The value of total expenditure equal the value of total income because in each transaction there is a buyer and a seller. For seller it is an income, for buyer it is an expenditure that is why the total expenditure equals the value of total income as one's income is other person expenditure.
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Why must the value of total expenditure equal the value of total
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6. Explain why an economy's income must equal its expenditure.
6. Explain why an economy's income must equal its expenditure.
Gross domestic production is equal to the total expenditure on the economy's output of goods and...
Gross domestic production is equal to the total expenditure on the economy's output of goods and services, but not the total income of everyone in the economy. the total income of everyone in the economy, but not the total expenditure on the economy's output of goods and services. neither the total income of everyone in the economy, nor the total expenditure on the economy's output of goods and services. the total income of everyone in the economy, and the total...
I8. Why does Total Output Total Expenditure Total Income? Identify the 3 aggregations of GDP and...
I8. Why does Total Output Total Expenditure Total Income? Identify the 3 aggregations of GDP and explain what EACH variable is. (17 pts) the Income aggregation (E + B+R+C+I+(G S) E: Employment Income B: Business Owner Income R: Rental Income C: Corporate Income I: Interest Income G: Government Income S: Government Subsidies the Output aggregation (Y ad - C+I+ G+NX) C: Consume expenditure I: Investment G: Government Spending NX: Net Exports (Exports-imports) the Expenditure aggregation (Y ad C+I+G+NX) C: Consume...
9. In the circular flow of income, why must the value of total production in an...
9. In the circular flow of income, why must the value of total production in an economy equal the value of total income? a. Domestic expenditures on imports generally equal foreign expenditures on U.S. exports. b. People tend to spend all of their income on goods and services. c. Taxes on the production of goods and services are determined according to individual income. d. Every penny spent on a good or service must end up as someone's income. 15. A...
2. The circular flow of income and expenditure The income and expenditure approaches to measuring a...
2. The circular flow of income and expenditure The income and expenditure approaches to measuring a nation's GDP can be combined using the circular flow model. Categorize each flow in the following table as part of either aggregate demand or national income. Flow Aggregate Demand National Income Net taxes (NT) O Investment spending (1) Consumption (C) Government purchases (G) OOO Net exports (X - IM) Disposable income (DI) 0 While national income and domestic product must be equal, income must...
otal debits must equal total credits. This is the basis of ... a. an income statement....
otal debits must equal total credits. This is the basis of ... a. an income statement. b. an earnings statement. c. a profit and loss statement. d. double-entry bookkeeping.
Aggregate expenditure is total value added in the economy income of households, businesses, governments, and foreigners....
Aggregate expenditure is total value added in the economy income of households, businesses, governments, and foreigners. revenue from the sale of goods and services. spending on final goods and services. The MPC can be defined as the change in consumption divided by the change in income. change in income divided by the change in consumption. ratio of income to saving. ratio of saving to consumption. The relationship between the MPS and the MPC is such that MPC - MPS =...
If total assets equal $345,000 and total stockholders' equity equal $140,000, then total liabilities must equal...
If total assets equal $345,000 and total stockholders' equity equal $140,000, then total liabilities must equal $485,000. O $205,000. o $140,000. o There is not enough information given to determine this
Why is the answer -$100? Scenario: Income-Expenditure Equilibrium GDP is $8000, autonomous consumption is $500, and...
Why
is the answer -$100?
Scenario: Income-Expenditure Equilibrium GDP is $8000, autonomous consumption is $500, and planned investment spending is $200. The marginal propensity to consume is 0.8. Reference: Ref 26-3 (Scenario: Income-Expenditure Equilibrium) According to the Scenario: Income- Expenditure Equilibrium, if GDP is S3000, how much is unplanned inventory investment? O b. $600 Ос. $100 d.-$100
1) T/F In the economy, income earned when producing new final goods and services must equal...
1) T/F In the economy, income earned when producing new final goods and services must equal expenditure on the new final goods and services 2) T/F Capital goods are goods that will be used in the future to produce more goods and services 3) T/F A firm produces 100 units of some good in the year 2017 but only manages to sell 90 of the units. When we calculate GDP for the year 2017 we will count the value of...
6. Explain why an economy's income must equal its expenditure.
Gross domestic production is equal to the total expenditure on the economy's output of goods and services, but not the total income of everyone in the economy. the total income of everyone in the economy, but not the total expenditure on the economy's output of goods and services. neither the total income of everyone in the economy, nor the total expenditure on the economy's output of goods and services. the total income of everyone in the economy, and the total...
I8. Why does Total Output Total Expenditure Total Income? Identify the 3 aggregations of GDP and explain what EACH variable is. (17 pts) the Income aggregation (E + B+R+C+I+(G S) E: Employment Income B: Business Owner Income R: Rental Income C: Corporate Income I: Interest Income G: Government Income S: Government Subsidies the Output aggregation (Y ad - C+I+ G+NX) C: Consume expenditure I: Investment G: Government Spending NX: Net Exports (Exports-imports) the Expenditure aggregation (Y ad C+I+G+NX) C: Consume...
9. In the circular flow of income, why must the value of total production in an economy equal the value of total income? a. Domestic expenditures on imports generally equal foreign expenditures on U.S. exports. b. People tend to spend all of their income on goods and services. c. Taxes on the production of goods and services are determined according to individual income. d. Every penny spent on a good or service must end up as someone's income. 15. A...
2. The circular flow of income and expenditure The income and expenditure approaches to measuring a nation's GDP can be combined using the circular flow model. Categorize each flow in the following table as part of either aggregate demand or national income. Flow Aggregate Demand National Income Net taxes (NT) O Investment spending (1) Consumption (C) Government purchases (G) OOO Net exports (X - IM) Disposable income (DI) 0 While national income and domestic product must be equal, income must...
otal debits must equal total credits. This is the basis of ... a. an income statement. b. an earnings statement. c. a profit and loss statement. d. double-entry bookkeeping.
If total assets equal $345,000 and total stockholders' equity equal $140,000, then total liabilities must equal $485,000. O $205,000. o $140,000. o There is not enough information given to determine this
Why
is the answer -$100?
Scenario: Income-Expenditure Equilibrium GDP is $8000, autonomous consumption is $500, and planned investment spending is $200. The marginal propensity to consume is 0.8. Reference: Ref 26-3 (Scenario: Income-Expenditure Equilibrium) According to the Scenario: Income- Expenditure Equilibrium, if GDP is S3000, how much is unplanned inventory investment? O b. $600 Ос. $100 d.-$100
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