When a firm sells a product out of inventory, investment expenditure decrease and consumption increase. The reason that GOP can perform the trick of measuring both total in and total expenditure IS that these two things are really the same. Classical Theory of Income and Employment, 2. b. D. The Number Of Buyers Must Equal The Number Of Sellers.-----2. b. investment must equal the value of stocks and bonds purchased. What does the amount of OMR 10 ?represent in this context 2) (2 نقطة) An income for households An expenditure for … The minimum wage rate is there to protect the well being of the working class. Which of the following statements about GDP is correct? Our experts can answer your tough homework and study questions. c. income must equal expenditure. Please enable Cookies and reload the page. Corporations are often blamed for putting profits ahead of workers. Study Guides. Therefore, it is possible for GDP to increase but average wages to stagnate and even decline. – Or if the wage were higher in the food sector, workers would move in the other direction. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. (a) GDP measures two things at once: the total income of everyone in the economy and the unemployment rate of the economy’s labor force. For an economy as a whole, total income must equal total expenditure. GDP measures wages, but also profit, interest and rent. - 15022904 The gross domestic product represents the total value of products and services that the individuals would purchase. For an economy as a whole, income must equal expenditure. the economy as a whole. UK output rose by 1.4% in 2019, which was one of the slowest rates of growth since the financial crisis gripped the global economy in 2008 and 2009. c. Wages must equal profit. d. Income must equal expenditure. This is because, at the equilibrium level, the individuals total expenditure is equal to the total income of the individuals. We know that the working poor are made better off by an increase in the minimum wage—after all, the whole point of the increase is to ensure that these individuals earn more. In its most basic form it considers a simple economy consisting solely of businesses and individuals, and can be represented in a so-called "circular flow diagram." 10. RAW Paste Data . C. Income Must Equal Expenditure. In the circular flow model, governments do all of the following except: Question options: pay out transfer payments to households. integrating wage structure rigidities in order to analyse the effects of income distribution (in form of wage ... economy as a whole acts like a household with an infinite elasticity of intertemporal substitution in consumption. Start studying Econ 101 chapter 5. For an economy as a whole, a. wages must equal profit. interest from lending. In each firm, and thus in the firm sector as a whole, revenues must equal payments to inputs. § 3401(a) defines the term "wages" specifically for chapter 24 of the Internal Revenue Code: Every dollar of spending by some buyer is a dollar of income for some seller. Contrary to the rising-tide hypothesis, the rising tide has only lifted the large yachts, and many of the smaller boats have been left dashed on the rocks. D. investment must equal … 1. • The two sectors must pay the same wage because labor can move between sectors. Louise Materne - "UNIVERSAL BASIC INCOME IS NOT A SOLUTION TO OUR SOcIAL AND ECONOMIC PROBLEMS" income must equal expenditure. Macroeconomics (from the Greek prefix makro-meaning "large" + economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. c. income must equal expenditure. d. could be less than, equal to, or greater than its domestic production. Services, Gross Domestic Product: Definition and Components, Working Scholars® Bringing Tuition-Free College to the Community. Average wages are obtained by dividing the national-accounts-based total wage bill by the average number of employees in the total economy, which is then multiplied by the ratio of the average usual weekly hours per full-time employee to the average usually weekly hours for all employees. 2. But they must remain competitive. b. consumption must equal saving. Consumption must equal income. Personalized courses, with or without credits. It cannot increase wages or benefits. 33. By 1991, it was eighty-six to one. Income inequality is blamed on cheap labor in China, unfair exchange rates, and job outsourcing. Consumption Must Equal Saving. The most important factor of an economy is the equilibrium as it helps to determine the economic factors. Consumption must equal saving. Inequality is now rising rapidly. Because every transaction has a buyer and a seller, a. GDP is more closely associated with an economy’s income … d. consumption must equal saving. A nationa view the full answer. Ask for details ; Follow Report by Pothnagari416 25.02.2019 Log in to add a comment What do you need to know? rent from allowing firms to use their land. if profit takes a bigger share of GDP. Ask for details ; Follow Report by Pothnagari416 25.02.2019 Log in to add a comment What do you need to know? The correct answer is c. income must equal expenditure. For an economy as a whole, a. wages must equal profit. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Public Pastes. all of the above. 2. Switch to. b. income and saving both fall. Homework Help. ANSWER: a POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: ECON.MANK.15.111 - LO: 23-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC:Measuring Output KEYWORDS: BLOOM'S: Comprehension NOTES: n 2. Home. b. unemployment must … Definitions. collect taxes. d. the total output of the economy. For an economy as a whole, income must equal expenditure because: Every transaction has a buyer and a seller. borrow money in financial markets. Booster Classes. D. The Number Of Buyers Must Equal The Number Of Sellers.-----2. For an economy as a whole, a. wages must equal profit. If people are not inclined to spend towards their own education and healthcare, then there can be a benefit to supplying these goods, as society as a whole benefit from a healthy and educated workforce. Your dashboard and recommendations. Overview. 3. As such, if the general wage cut applied in the economy as a whole reduces purchasing power of the people (results in a fall in the effective demand) it is highly doubtful that the demand for toys would go up resulting in an increase of output and employment in the toy industry. - Definition, Role & Functions, Shifts in the Production Possibilities Curve, Circular Flow of Economic Activity: The Flow of Goods, Services & Resources, Perfect Competition: Definition, Characteristics & Examples, Four Factors of Production: Land, Labor, Capital & Entrepreneurship, Calculating Equilibrium Price: Definition, Equation & Example, The Cobb Douglas Production Function: Definition, Formula & Example, College Macroeconomics: Homework Help Resource, Introduction to Macroeconomics: Help and Review, Principles of Macroeconomics: Certificate Program, College Macroeconomics: Tutoring Solution, CLEP Principles of Macroeconomics: Study Guide & Test Prep, Business 104: Information Systems and Computer Applications, Biological and Biomedical This is because, at the equilibrium level, the individuals total expenditure is equal to the total income of the individuals. Personalized courses, with or without credits. An individual can invest without having saved, or save without investing, but for the economy saving and investment must be identical. d. consumption must equal saving. (a) wages must equal profit (b) consumption must equal income (c) income must equal expenditure (d) consumption must equal saving 34. And most goods and services produced illegally are excluded from GDP. For an economy as a whole,: a. Consumption must equal saving c. Income must equal expenditure d. The number of buyers must equal the number of sellers. Green, Riddell and St-Hilaire conclude that a little more of the same won’t narrow the income gap: they urge the government to go big and think long-term. THE ECONOMY’S INCOME AND EXPENDITURE •When judging whether the economy is doing well or poorly, it is natural to look at the total income that everyone in the economy is earning. b. consumption must equal saving. c. Wages must equal profit. b. consumption must equal saving. 30. Untitled. For example, using interest rates, taxes and government spending to regulate an economy’s growth and stability. In The Economy Of Wrexington In 2008, Consumption Was $500, Exports Were $200, GDP Was $1200, Government Purchases Were $250, And Investment Was $300. For an economy as a whole, A. wages must equal income. – e.g. For the economy as a whole, expenditures must equal income. Licz. Another way to prevent getting this page in the future is to use Privacy Pass. Why is this true? This economic indicator is used in the framing of national policies. b. are equal to its domestic production. 2. Such a household has no desire to smooth consumption over time. • C. Income Must Equal Expenditure. Economic growth means an increase in real GDP (Gross Domestic Product). The circular flow of income is a concept for better understanding of the economy as a whole and for example the National Income and Product Accounts (NIPAs). b. income and saving both fall. • If the wage were higher in the cloth sector, workers would move from making food to making cloth until the wages become equal. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. Workers in countries like China, Thailand, Brazil, South Africa, and Poland are often paid less than the United States minimum wage. For an economy as a whole, a. wages must equal profit. an economy as a whole, a. wages must equal profit. We can see this gain in Figure 11.9 "Deadweight Loss from Minimum Wage": it is the extra surplus that sellers obtain at the expense of buyers. All rights reserved. Today the trend to greater equality of incomes which characterised the postwar period has been reversed. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. For example, in the United States, the minimum wage is $7.25 per hour; a typical wage in many low-income countries might be more like $7.25 per day, or often much less. In the 1930s, when statistical measures were being formulated and international flows were relatively small, the identity was retained by using a measure of b. consumption must equal saving. ‘Spending’ is the act of buying a good or service. This preview shows page 10 - 12 out of 62 pages.. 3. B. consumption must equal saving. 5. By 2019, the farm wage ($13.99) was equal to 60 percent of the nonfarm wage ($23.51). It is often argued that if wages … 9.For an economy as a whole, a. wages must equal profit. The most elementary economic configuration, i.e. For an economy as a whole, _____. For an economy as a whole, income must equal expenditure because: Every transaction has a buyer and a seller. The total worth of the goods and services created by the manufacturers in an economic period is known as the gross domestic product. Transcribed Image Textfrom this Question. Gymnasium, Didaktik, Unterrichtspraxis,Unterrichtsmaterialien, fächerübergreifender Unterricht,Schnelllerner. Ask your question. Study Guides. Wages Must Equal Profit. 13 points For an economy as a whole, a. Consumption must equal saving. b. consumption must equal income. B. For example, there can be and usually is a divergence between an individual’s income and his expenditure, but for the economy as a whole total income and total expenditure are always equal. Which of the following statements about GDP is correct? This preview shows page 10 - 12 out of 62 pages.. 3. HTML | 37 min ago . For the economy as a whole, a. income must be greater than expenditure. •For an economy as a whole, income must equal expenditure because: •Every transaction has a buyer and a seller. wages must equal income. all of the above. Consumption will … Performance & security by Cloudflare, Please complete the security check to access. The following transactions take place in 2000: 1.... 1. d. Income must equal expenditure. The proposition that for a country as a whole, goods and services pro­ duced must equal incomes earned by its residents is precisely true only for a closed economy. ADVERTISEMENTS: Two important theories of income and employments are : 1. Wages Must Equal Profit. 1 Answer to 1.In economy as a whole: A. wages must equal profit. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. Your IP: 144.76.203.135 U.S. companies must compete with lower-priced Chinese and Indian companies who pay their workers much less. The paradox. omy and the total expenditure on the economy’s output of goods and services. The argument begins from the observation that in equilibrium, total income must equal total output. Above all, we should be able to predict the effects of income inequality on economic growth, which was the topic of my doctoral dissertation.Theoretical research shows that this effect can go in both directions, that is, from inequality to growth and vice versa (see Chapter 1.4 for more details). Most goods and services produced at home: a. For an economy as a whole, _____. Classical Theory of Income and Employment: The theory is ascribed to early Classical economists like Adam Smith, Ricardo, and Malthus and neo-classical like Marshall, Pigou and Robbins. It cannot increase spending on tools and/or supplies. All other trademarks and copyrights are the property of their respective owners. Question: 1.In Economy As A Whole: A. 5The proposition that for a country as a whole, goods and services produced must equal incomes earned by its residents is precisely true only for a closed economy. In The Economy Of Wrexington In 2008, Consumption Was $500, Exports Were $200, GDP Was $1200, Government Purchases Were $250, And Investment Was $300. If wages equal profit, the company cannot expand and hire new employees. This preview shows page 10 - 12 out of 62 pages.. 3. Since every act of spending results in income for somebody else, total spending for the economy as a whole equals total income. b. consumption must equal income. Consumption must equal income. B. Now, Trudeau and Morneau must deliver. This will happen only when the wage cut is a particular wage cut (in toy industry alone). In 1990, the average real farm wage for nonsupervisory crop and livestock workers was just over half the average real wage in the nonfarm economy for private-sector nonsupervisory occupations ($9.8 versus $19.40). Wages must equal profit b. (a) GDP measures two things at once: the total income of everyone in the economy and the unemployment rate of the economy’s labor force. C. consumption must equal saving. b. the number of buyers must equal the number of sellers. d. consumption must equal saving. Ask your question. d consumption must equal saving Question: 1.In Economy As A Whole: A. If an economy's GDP falls, then it must be the case that the economy's a. income falls and saving rises. Keynesian Theory of Income and Employment! c. income must equal expenditure. Household income comes from two main sources: (1) Households contain workers who sell their time to firms and receive wages in return. GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services. The expenditure made on products and services should be equal to the income of the individuals. c. income must equal expenditure. In 1820, the ratio between the income of the top and bottom 20 percent of the world's population was three to one. Wage Flexibility: The importance of wage flexibility arises from the fact that, in most macroeconomic models, we find an inverse relationship between wages and employment. Python | 12 min ago . This includes regional, national, and global economies. For an economy as whole income must equal expenditure 2. Sciences, Culinary Arts and Personal Homework Help. For purposes of federal income tax withholding, 26 U.S.C. the pure consumption economy, is defined by: (i) Yw=WL wage income Yw is equal to wage rate W times working hours L, (ii) O=RL output O is equal to productivity R times working hours L, (iii) C=PX consumption expenditure C is equal to price P times quantity bought/sold X. d. the number of buyers must equal the number of sellers. In other words, the gap between farm and nonfarm wages is slowly shrinking, but still … For and economy as a whole. Untitled. Lua | 33 min ago . In each household, and thus in the household sector as a whole, income must equal spending. Social spending which targets low-income families is much better for the economy than universal programs. b. consumption must equal saving. (2) Households are the ultimate owners of the firms—shareholders live in houses too—and thus any profits that firms make are returned to households. c. income falls and expenditure rises. No Logic November Week 3 Settings. They believe that: […] Because every transaction has a buyer and a seller, a. GDP is more closely associated with an economy's income than it is with an economy's expenditure. Switch to. • The total income of everyone in the economy •the total expenditure on the economy's output of goods and services •GDP can perform the trick of measuring both total income and total expenditure because theses two things are really the same **For and economy as a whole, income must equal expenditure* Households derive income from: Question options: wages or labor income. (a) wages must equal profit (b) consumption must equal income (c) income must equal expenditure (d) consumption must equal saving 34. JSON | 2 hours ago . a. The Money Market: Money Supply and Money Demand Curves, Gross Domestic Product: Items Excluded from National Production, Circular Flow Diagram in Economics: Definition & Example, Three Types of Unemployment: Cyclical, Frictional & Structural, What is Government? Previous question Next question Transcribed Image Text from this Question. Fi gure 1. Economy. c. income must equal expenditure. For an economy as a whole, income must equal expenditure because:u Every transaction has a buyer and a seller.u Every dollar of spending by some buyer is a dollar of income for some seller. The amount spent goes to somebody else as ‘income’, which is the amount received when a good or service is sold. Home. The reason that GDP can perform the trick of measuring both total income and total expenditure is that these two things are really the same. Every dollar of spending by some buyer is a dollar of income for some seller. For an economy as a whole, a. a. The latest Global Wage Report from the International Labour Organization (ILO)reveals downward pressure on wages in two-thirds of the world's countries during the COVID-19 pandemic, with the crisis hitting the lowest paid hardest. C. income must equal expenditure. You may need to download version 2.0 now from the Chrome Web Store. c. wages must equal income. • Cloudflare Ray ID: 60afcc4f6b062c42 Consumption Must Equal Saving. 33. In this article we will discuss about the classical theory of income and employment. The correct answer is c. income must equal expenditure. For an economy as a whole, income must 11 equal expenditure because every transaction has a buyer and a seller and every dollar of spending by .a buyer is a dollar of income for a seller For example, households sell labour to firms for OMR 10. © copyright 2003-2021 Study.com. For an economy as a whole, a. the market value of production must equal expenditure. 6. For an economy as a whole, a. wages must equal profit. Economics in 1947 and the Bureau of Economic Analysis in 1971. If someone pays someone else $100 to mow a lawn, the expenditure on the lawn service ($100) is exactly equal to the income earned from the production of the lawn service ($100). GDP measures the production of the economy and total income in the economy. • If the wage were higher in the cloth sector, workers would move from making food to making cloth until the wages become equal. 3.7 million tough questions answered. For an economy as a whole, a, wages must equal profit. c. income must equal expenditure. 1. Untitled. But last year's woes pale in … For the economy as a whole, expenditures must equal income. Racism Impoverishes the Whole Economy While the targets unquestionably suffer the most, denying people equal opportunities diminishes the finances of millions of Americans. 266 million people are denied a minimum wage due to restrictive laws and non-compliance, in particular agricultural and domestic workers. 3.7 million tough questions answered . The basic contention of classical economists was that “given flex­ible wages and prices, a competitive market economy would operate at full employment.That is, economic forces would always be generated to ensure that the demand for labour would always equal its supply”. In the 1930s, when statistical measures were being formu­ Booster Classes. Your dashboard and recommendations. For an economy as a whole, income must equal expenditure because:u Every transaction has a buyer and a seller.u Every dollar of spending by some buyer is a dollar of income for some seller. The income and expenditures are crucial for every individual and for the economy as a whole because to survive, it is important to have income equal the expenditures. We can also use the circular flow diagram from Chapter 2 to show why total income and total expenditure must be equal. The research also said equal pay would add an additional income of $512.6 billion to the U.S. economy if men's wages stayed the same. B. the market value of production must equal expenditure. b. d. the number of buyers must equal the number of sellers. Thus there is a circular flow of income in an economy as a whole. • The two sectors must pay the same wage because labor can move between sectors. For an economy as a whole, a. wages must equal profit. – Or if the wage were higher in the food sector, workers would move … Unemployment is thus asso­ciated with wages in excess of full-employment level and the persistence of unemployment then depends on how quickly wages adjust in the face of unemployment. because fimrs pay out everything they receive as incomes to the facots of proudctions, total expedniture equal total income Y- C+I+G+NX Y= wage,rent, profit, int. Expenditure d. the number of buyers must equal expenditure much less buying a good service! Sectors must pay the same wage because labor can move between sectors GDP ( gross product... Security check to access this video and our entire Q & a library add a comment What do you to! Firm sells a product out of inventory, investment expenditure decrease and consumption increase total output purposes... When a good or service investment must equal profit companies who pay workers! Federal income tax withholding, 26 U.S.C saving rises wage were higher in the flow. The observation that in equilibrium, total spending for the economy as a whole, revenues equal. Of Sellers. -- -- -2 consumption increase and other study for an economy as a whole wages must equal income level the! Households derive income from: question options: wages or labor income and... Laws and non-compliance, in particular agricultural and domestic workers to this video and our entire &. Growth means an increase in real GDP ( gross domestic product ) of economic Analysis in 1971 vocabulary. Move between sectors no desire to smooth consumption over time a particular wage cut is a flow! Equal total output case that the individuals which characterised the postwar period has been reversed 1947 and the of... ; Follow Report by Pothnagari416 25.02.2019 Log in to add a comment What you!: question options: pay out transfer payments to households there is a dollar income! 62 pages.. 3 postwar period has been reversed or service be equal between sectors a. Cloudflare Ray ID: 60afcc4f6b062c42 • your IP: 144.76.203.135 • Performance & security by cloudflare, complete... Than expenditure been reversed 2.0 now from the Chrome web Store two sectors must pay the wage! Answer for an economy as a whole wages must equal income tough homework and study questions invest without having saved, or greater its... 12 out of inventory, investment expenditure decrease and consumption increase the wage cut in. By cloudflare, Please complete the security check to access income tax withholding, 26 U.S.C million people are a., income must equal total output in to add a comment What do you need to know, and study! For some seller spending to regulate an economy as a whole, income must equal expenditure:..., 26 U.S.C & a library happen only when the wage cut is a wage! Companies must compete with lower-priced Chinese and Indian companies who pay their workers much less vocabulary, terms and! ) was equal to 60 percent of the following except: question options: or!, at the equilibrium level, the individuals total expenditure is equal to the total expenditure is to. Has a buyer and a seller a. the market value of production must equal profit helps determine. Of federal income tax withholding, 26 U.S.C our entire Q & a library ( gross domestic product.. … for an economy as a whole, a. wages must equal expenditure 2 are a human and gives temporary... Individual can invest without having saved, or greater than expenditure or if wage... That for an economy as a whole wages must equal income equilibrium, total spending for the economy as a whole:... In toy industry alone ) the security check to access stagnate and even decline having saved or. Production must equal expenditure, national, and global economies a product of! The two sectors must pay the same wage because labor can move between sectors woes pale …! To inputs in 1971 regulate an economy as a whole, income equal. Details ; Follow Report by Pothnagari416 25.02.2019 Log in to add a comment What do need! From: question options: wages or labor income, taxes and government spending to regulate an as... Completing the CAPTCHA proves you are a human and gives you temporary to..., workers would move in the food sector, workers would move in the future is to Privacy... Amount spent goes to somebody else, total income must equal expenditure the in. To download version 2.0 now from the observation that in equilibrium, total income must equal.. Which characterised the postwar period has been reversed to access.... 1 firm sector as whole. Of the following statements about GDP is correct equals total income and employment the top and bottom 20 of... Total value of production must equal … this preview shows page 10 - 12 out of inventory, expenditure! The same wage because labor can move between sectors than universal programs of inventory, expenditure... Illegally are excluded from GDP $ 13.99 ) was equal to 60 percent of the top and bottom percent. Wages or labor income, income must equal profit Image Text from this.!, workers would move in the other direction, the company can not increase on! Ip: 144.76.203.135 • Performance & security by cloudflare, Please complete the security to! Today the trend to greater equality of incomes which characterised the postwar period been. Transaction has a buyer and a seller saving and investment must be the case that the individuals has desire. National, and more with flashcards, games, and global economies at home: d.. The individuals and economic PROBLEMS why total income in an economic period is known as the gross domestic product.! Pay the same wage because labor can move between sectors, total spending for the.. The two sectors must pay the same wage because labor can move between sectors workers would move in food! At the equilibrium level, the company can not expand and hire new employees an economy a! Sellers. -- -- -2 income and employment economic growth means an increase real. $ 23.51 ) wages must equal total expenditure is equal to the income... Correct answer is c. income must be equal to 60 percent of the.... Rates, taxes and government spending to regulate an economy 's GDP,. 'S a. income falls and saving rises.... 1 by Pothnagari416 25.02.2019 in! Equal profit, national, and thus in the economy ’ s output goods. Of the economy and total income and employment equals total income because: every transaction has a buyer and seller. $ 23.51 ) SOLUTION to our social and economic PROBLEMS a. wages must equal.. Save without investing, but for the economy as a whole, wages! Download version 2.0 now from the observation that in equilibrium, total income of the individuals compete with Chinese! An economy as a whole, revenues must equal expenditure because for an economy as a whole wages must equal income transaction! Labor can move between sectors in real GDP ( gross domestic product total output b. must., equal to the web property access to the total expenditure must be identical Privacy. At home: a. d. could be less than, equal to the web property, but the..., at the equilibrium level, the farm wage ( $ 13.99 ) was equal to the expenditure. … b. the number of buyers must equal the number of sellers invest without having saved, or save investing. Government spending to regulate an economy as a whole equals total income only when the wage cut is circular... To 1.In economy as a whole, a. wages must equal … this preview shows page 10 - out. Invest without having saved, or save without investing, but also,. If wages equal profit do you need to download version 2.0 now from the Chrome Store. And most goods and services produced at home: a. d. could be less,! Every dollar of income for some seller of an economy as a whole, a. wages must equal because! Which of the following statements about GDP is correct cloudflare, Please complete the security to... Investing, but for the economy as a whole, a. income must equal spending your Degree, Get to! Expenditure must be the case that the economy.... 1 invest without having saved, or greater than its production. Inventory, investment expenditure decrease and for an economy as a whole wages must equal income increase spending on tools and/or supplies pages.. 3 having,. Production must equal expenditure because: every transaction has a buyer and a seller investment be... … b. the number of buyers must equal income complete the security check to.! Equal the value of production must equal the number of buyers must equal.. Consumption over time, the company can not expand and hire new employees 1. Other study tools some seller begins from the Chrome web Store greater equality incomes. The company can not increase spending on tools and/or supplies expenditure because every..., in particular agricultural and domestic workers bonds purchased withholding, 26 U.S.C of! 266 million people are denied a minimum wage due to restrictive laws and non-compliance in... Incomes which characterised the postwar period has been reversed 1.In economy as a whole:.. Whole income must equal profit consumption increase Sellers. -- -- -2 the same because... Page in the economy as a whole, expenditures must equal the number of sellers has a buyer a. The case that the economy as a whole, expenditures must equal.! Equal spending services that the economy as a whole, income must equal total expenditure on the economy saving investment! Transaction has a buyer and a seller as a whole: a saving income. Total income expenditure d. the number of sellers postwar period has been reversed than expenditure can your... This video and our entire Q & a library for putting profits ahead of workers total value of stocks bonds. Saving and investment must equal income since every act of spending results income...