Which of the Following Statements About National-Income Accounting Is Correct

question 89

Multiple Choice

Which of the following statements about national-income accounting is correct?

• A)The total value added in the economy is equal to the sum of all components in the circular flow of expenditure and income.
• B)The value of the expenditure on a nation's output is equal to the total income claims generated by producing that output.
• C)GDP on the expenditure side is calculated by adding up all the income claims generated by the act of production.
• D)GDP on the income side is calculated by adding up total expenditure for each of the main components of final output.
• E)GDP from the expenditure side and GDP from the income side differ by the amount of investment in the economy.