The Circular Flow Model Shows That GDP Can Be Calculated

question 1

Multiple Choice

The circular flow model shows that GDP can be calculated by

• A) only the expenditure method in which the four components of aggregate expenditure must be measured in the aggregate.
• B) only the income method in which the four components of aggregate income must be measured separately.
• C) both the expenditure and income methods, even though aggregate expenditure is usually less than aggregate income.
• D) both the expenditure and income methods because aggregate expenditure equals aggregate income.