The fundamental identity of national income accounting is
A. total production = total income - total expenditure.
B. total production = total income = total expenditure.
C. total production = total income/total expenditure.
D. total production = total income + total expenditure.
Answer: B
You might also like to view...
Which of the following is a reason for the existence of sticky wages?
A) Cutting wages during an economic downturn is illegal. B) Some wages are set by contract. C) Increasing wages means reduced profits during economic expansions. D) By law, if one worker's wages are changed, all workers' wages must be changed.
Inc's stock is currently $50. The last dividend that they paid was $1. If dividends are expected to increase at a 10% annual rate, what is the firm's equity cost of capital?
What will be an ideal response?
The kinked demand curve is an attempt to model strategic behavior
Indicate whether the statement is true or false
In the intermediate range of the aggregate supply curve, if government spending increases caused the aggregate demand curve to shift outwards, which of the following ismostlikely to occur?
A. The price level and real GDP will both rise. B. The price level will not change, but real GDP will increase. C. The price level will rise, but real GDP will not change. D. Both the price level and real GDP will not change.