Asked by Richard Cutshaw on Jul 21, 2024
Verified
GDP can measure either the total income of everyone in the economy or the total expenditure on the economy's output of goods and services, but GDP cannot measure both at the same time.
Total Income
The aggregate income earned by all individuals or entities in an economy, including wages, profits, and rent.
Total Expenditure
The sum of all outlays or spending by an individual, household, or an economic entity within a certain period of time.
- Acquire knowledge of the interplay between an economy's financial gains and expenditures.
Verified Answer
CC
Cassandra ChioccoJul 22, 2024
Final Answer :
False
Explanation :
GDP measures both the total income of everyone in the economy and the total expenditure on the economy's output of goods and services simultaneously, as these two measures should, in theory, be equal due to the circular flow of income.
Learning Objectives
- Acquire knowledge of the interplay between an economy's financial gains and expenditures.